Joplin tornado could cost insurers as much as $2 billion, say regulators

Several months have passed since a devastating tornado struck the city of Joplin, Missouri. The tornado was classified as an F-5, the highest classification of tornado, causing an unprecedented level of damage to the small city. The natural disaster struck a heavy blow against the insurance industry which has, to date, paid out more than $1 billion in claims. This number, however, is expected to double by the time insurers settle all outstanding claims, according to the Missouri Insurance Department. The Joplin tornado was one of the worst natural disasters…

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Insurers will make over $2.2 billion in payments for Joplin claims

To date, insurers have made more than $2 billion in payments to cover claims relating to the tornados in Joplin. According to the organization that assembles catastrophe insurance loss predictions, Property Claims Services, the total payouts for the Joplin disaster should pass the $2.2 billion mark. Insurance Information Institute spokesperson, Robert Hartwig, said that this amount is where the numbers from the payments are headed, and it is what insurers are expecting to have to pay. This includes “actual dollars disbursed, plus the dollars insurers have earmarked or put in…

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Missouri Department of Insurance says Joplin disaster will be the most costly insurance payout in state history

Joplin Tornado

In late May, a small town in Missouri known as Joplin was ravaged by a powerful tornado. The damage caused to the town left many without homes or work and proved to be the most costly disaster in the state’s history. Federal agencies, insurance companies and emergency services rallied together to help those in need and steer the city toward recovery, but the road is long and the costs of recovery continue to mount. Officials with the Missouri Department of Insurance now say that the disaster is responsible for the…

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Missouri officials report recovery of $5 million from shady insurers, money to be returned to policyholders

The Insurance Department of Missouri has released their latest quarterly report regarding several issues with the state’s insurance industry. The state has been wracked with an onslaught of consumer complaints for the past three months, after devastating tornadoes tuck their toll in the towns of Joplin and St. Louis. These complaints spurred the Insurance Department to investigate several claims that were filed as well as the operations of some of the insurance companies operating in the state. While the report highlights a number of issues within the insurance industry, it…

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