Tornadoes, hail, winds, and rainfall from convective weather and severe thunderstorm outbreaks have become one of the most significant contributors to annual insurance and reinsurance industry losses in the United States.
According to Impact Forecasting, if the $20 billion threshold is breached again, it will be the 15th consecutive calendar year that severe convective storm losses have reached that level.
Aon's team commented on recent loss activity, which it expects to result in another insured loss in the hundreds of millions of dollars.
The Impact Forecasting team reported a "very active three months for the peril," with hundreds of millions of dollars in losses from severe thunderstorms, tornadoes, hail, and winds, as well as Derecho type events, almost every week.
Tornado reports have remained consistent with the trend, but hail reports have fallen below the seasonal average.
Convective storm losses vary, but an upward trend is clearly visible here.
With exposures rapidly increasing in some particularly vulnerable areas of the United States, this upward trend in convective storm losses is likely to continue. Experts are having difficulty determining whether or not there is a climate influence here.
In the United States, insurance and reinsurance market losses from severe weather and convective storms were estimated to be around $20 billion in 2021.
Given the current economic loss total, it appears highly likely that the insurance and reinsurance impacts from this peril will exceed $20 billion this year.