Hailstorms and other disasters have caused quite a bit of destruction already in 2020, says Aon.
Severe weather damage from events across the United States have led to substantial costs for insurers.
A sizeable portion of the $4 billion estimated economic cost is covered by insurance policies.
Much or the severe weather damage caused by storms have involved hail, according to the monthly Global Catastrophe Recap report from Aon. A substantial storm outbreak struck the Plains, Midwest and Southeast on May 4 and 5. This event primarily affected parts of Kansas, Arkansas, Missouri, Tennessee, and South Carolina, according to Aon’s report. The majority of the destruction was related to straight-line winds, which brought about economic losses greater than $975 million. Of that, about three quarters of the costs were covered by insurance.
May 16 through 21 brought record rains and flooding resulted in two dams that failed near Midland Michigan on May 19. This brought the Tittabawassee River to historic flood levels. Also affected by flooding that month was a substantial part of the Chicago metro region. Costs from these damages were estimated to be within the hundreds of millions of dollars. Though most hail and wind damages are usually covered, low coverage from the National Flood Insurance Program (NFIP) was present in the areas most affected by water. Therefore, uninsured flood rates contributed to the comparatively higher insured wind and hail costs to insurers.
Severe weather damage was also high elsewhere in the world, but insurance coverage was lower.
The report underscored that India, Bangladesh and Sri Lanka was heavily affected by Cyclone Amphan. It killed at least 133 people, 103 of whom lived in India, 26 were in Bangladesh, and the remaining four were in Sri Lanka. Over 1,200 people were injured in that storm. Estimates from the governments of India and Bangladesh estimated that there were almost 3 million damaged or destroyed homes from that storm. That event also left a catastrophe across large areas of infrastructure and agriculture.
The West Bengal, India government estimates that total economic losses will be greater than $13.5 billion. Bangladesh officials estimate $1.5 billion in damages. The vast majority of that severe weather damage is expected to be uninsured.