Insurance industry feels financial impact of Oklahoma tornados

Oklahoma tornado damage - homeowners insurance industry

Insurance industry sees payments top $1 billion

The Oklahoma Department of Insurance has released the financial information concerning a powerful tornado outbreak that struck the state in May of this year. The information suggests that the tornado outbreak may be one of the most costly natural disasters in the state’s history. Insurance Commissioner John Doak claims that the financial impact of these tornadoes is staggering and notes that the rebuilding effort for communities stuck by tornadoes has only just begun. The cost of these disasters could have a significant impact on the insurance industry.

Financial pressure not likely enough to break the industry

According to the Department of Insurance, insurance payments for the May tornadoes have surpassed $1 billion. While the agency has expected to see insurance payments soar, these payments continue to grow with every passing week. The insurance industry is well equipped to handle the financial impact of the tornado disasters, but payments have not yet shown signs of slowing down, which may eventually wear away the insurance industry’s financial resolve. The damage caused by the tornadoes is not infinite in nature, of course, so insurance payments are expected to reach a peak in the near future.

Oklahoma tornado damage - homeowners insurance industryOklahomans file more than 91,000 claims

The insurance industry has handled more than 91,000 claims since May 19. Many homeowners, businesses, and those affected by the tornadoes have yet to file claims due to damage assessments and the services they are receiving from insurance adjusters and state agencies. A significant portion of the state’s 91,000 claims remain unresolved, which has lead the state’s Department of Insurance to host a recovery assistance event in order to provide some aid to those affected by the disaster.

Recovery event could help people connect with their insurers

Insurance Commissioner Doak has requested that insurance industry representative attend the event in order to connect with policyholders in a more dynamic way. The event may give policyholders an opportunity to voice their concerns regarding claims and find out more information about the claims process. Despite the financial impact of the tornado outbreak and the delay in processing claims, the insurance industry remains relatively resolute in the wake of the catastrophe.

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