US storms to cost more than $1bn: Impact Forecasting

Insurance claims stemming from the spate of thunderstorms and tornadoes that took place in the US in May are set to exceed $1 billion.

This is according to Impact Forecasting, Aon Benfield’s catastrophe model development team, in the latest edition of its monthly global catastrophe recap report.

“Total aggregated severe thunderstorm and flood economic losses for May were expected to near $3 billion, with overall insured losses set to easily exceed $1 billion despite low flood insurance penetration in parts of Oklahoma and Texas,” said Impact Forecasting.

Thunderstorms which caused major flooding in Texas and Oklahoma killed 41 people and damaged more than 5,000 homes in Texas alone, resulting in what proved to be the wettest May on record for both states.

In addition, severe weather prompted 412 preliminary reports of tornadoes by the US Storm Prediction Center. This would equal the highest monthly number of US tornadoes since April 2011 (758).

Steve Bowen, Impact Forecasting associate director and meteorologist, said: “A meteorologically active month around the globe in May was highlighted by record rainfall from persistent thunderstorms across the US states of Texas and Oklahoma.

“The rains, which were 500 percent greater than normal values for the month of May in some locations, led to major riverine and flash flooding in areas that had long been mired in a multi-year drought. In the immediate aftermath of the event, Impact Forecasting was able to successfully implement flood extents and scenarios into our US flood model for deployment to clients.”