Insured losses from U.S. Midwest storms will reach into hundreds of millions of dollars

Insured losses from severe storms in the Midwest region of the United States will “easily reach well into the hundreds of millions” of dollars, based on the number of claims being filed, Aon Benfield said in its weekly catastrophe recap report issued Friday.

The storms began around Nov. 17 and into Nov. 18. “According to the Storm Prediction Center (SPC), at least 106 tornado touchdowns were registered (of which 70 have been confirmed) in addition to reports of damaging winds (460) and hail (32),” Aon’s report said.

“Sunday’s (Nov. 11) tornadic activity follows what has been one of the quietest tornado years on record in the United States,” the report added.

“According to data from the Storm Prediction Center, as of November 16 (one day before the outbreak), there had been just 818 preliminary tornadoes – which was the lowest year-to-date tally since 1988.”

Illinois and Indiana were among the hardest-hit states, though several other states were affected. “In total, more than 53 million people from 10 states were at significant risk of tornadoes and violent thunderstorm activity at the peak of the event,” the report noted.

Early estimates suggest that the total economic loss from the events will exceed $1 billion, which would make the storms the year’s sixth billion-dollar severe weather event in the U.S., according to Aon.

“It is worth noting that the insurance industry has never sustained a billion-dollar loss from a November severe weather event,” the report noted.