Economic losses from severe weather exceeded $4bn in May

Cyclone Amphan, which swept across India, Bangladesh, and Sri Lanka killing at least 133 people, damaged three million homes and has caused economic damage of some $1.5 billion, according to Aon’s monthly May Global Catastrophe Recap. Most of the damage is expected to be uninsured.

Michal Lörinc, catastrophe analyst within Aon’s Impact Forecasting team, said: “The vulnerabilities of infrastructure were amplified by Cyclone Amphan’s widespread effects in India and Bangladesh during May. The storm brought extensive coastal and inland flooding, in addition to hurricane-force wind gusts, which put a further spotlight on the need for future investments in modernizing coastal barriers, embankments, and the electrical grid in storm-prone areas around the world. The use of catastrophe models to incorporate future storm scenarios is one useful option to use as a guide for investment planning.”

For the whole of May, US economic losses from severe weather exceeded $4bn the report said. It also noted that several severe weather outbreaks across the US resulted in five deaths, while insurers experienced another costly month, as a significant proportion of the minimum $4 billion economic cost was covered by insurance.

One particularly severe outbreak was seen across the Plains, Midwest, and Southeast on May 4-5, with impacts being felt the most in parts of Kansas, Arkansas, Missouri, Tennessee, and South Carolina. Most damage was due to straight-line winds, leading to total economic losses estimated above $975 million, with 75 percent of the costs insured. A major hailstorm in San Antonio, Texas, on May 27 was also expected to approach or exceed $1 billion in financial costs.

Further natural hazard events to have occurred in May included: Tropical Storm Amanda, which affected parts of Central America and caused 33 fatalities; Typhoon Vongfong, which became the first named storm of the 2020 Pacific Typhoon Season and impacted Philippines; seasonal flooding in Eastern Africa; notable hail, wind and flood-related effects occurred in Spain, France, Germany, the Czech Republic and Poland on May 9-11; and strong winds and heavy rains in western Australia on May 25.