Tornado outbreaks “manageable” for U.S. insurers

An unusually early start to tornado activity in the United States has caused severe localized damage, but the overall impact on the insurance industry should be “manageable,” according to Standard & Poor’s.

In an analysis released Mar. 16, the rating agency said primary insurers would pick up the bulk of insured tornado losses, with a modest impact on reinsurers.

“Given the early estimates of insured losses, we do not expect these tornadoes to trigger any of our rated catastrophe bonds,” said Standard & Poor’s credit analyst Jason Porter. There were approximately 267 measured tornadoes across the United States between Jan. 1 and Mar. 4, 2012, according to the National Weather Service’s Storm Prediction Center.