Allstate has announced their latest estimates of their Q2 losses. The prestigious insurer has had a rough year given the frequency and severity of storms and other natural disasters throughout the U.S. Indeed, the entirety of the nation’s insurance industry has been shaken and many now believe that it stands on unstable ground. Risk analysts and insurance officials have speculated that the industry may not be able to withstand another natural disaster without significant financial aid from the federal government.
Allstate’s previous estimations of their losses for the months of April and May hovered around $2 billion. Their most recent estimate adds another $300 million to that total, after more than 13 natural disasters occurred in the month of June. The insurer’s new estimate is set at $2.3 billion.
The insurer has taken to updating this estimate with monthly and quarterly reports if losses in a given timeframe surpass $150 million. This is an effort to keep consumers and insurance regulators updated on the happenings of the company in regards to its disaster relief and analysis. The practice begun in April, when an outbreak of deadly tornadoes ravaged much of the Southern U.S. Along with other storms and disasters, the time between April and June was riddled with losses for insurance companies as they endured a rare but not unusual bout with severe weather.
Allstate will continue to provide regular updates until the amount of loss no longer exceeds the $150 million mark.
