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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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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Joplin tornado may cost insurance companies up to $2 billion

Director John M. Huff from the Missouri Department of Insurance announced that the EF-5 tornado in Joplin may have been the “largest insurance event” in the history of the state, and it will cost insurers up to $2 billion in payments. As a result of the tornado that hit Joplin on May 22, 2011, insurance companies have already made payments of over $500 million on the resulting claims. That total is expected to grow, and some experts – including Huff – are predicting that the final number will be three…

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