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Impact Forecasting: Insurance losses from April US storms may top $3B


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Impact Forecasting: Insurance losses from April US storms may top $3B

Insurance losses from the five outbreaks of severeconvective storms that hit the U.S. in April could exceed $3.0 billion,according to Aon Benfield's Impact Forecasting. Total aggregate economic lossescould surpass $4.0 billion.

Total economic losses from the storm system that broughtnear hurricane-force wind gusts across the northern and eastern sections of theU.S. from April 2 to April 4 were estimated at up to $475 million. Public andprivate insurers listed payouts of more than $325 million, according to ImpactForecasting's latest Global Catastrophe Recap.

Thunderstorms that caused damages in parts of the TennesseeValley and Southeast on April 6 to April 7 were expected to have causedmillions of dollars of total economic and insured losses.

Rounds of thunderstorms resulted in catastrophic hail damageacross parts of the Plains and Southeast from April 10 to April 13. The eventcaused extensive damage to homes, businesses and vehicles, especially in Texas'Dallas-Fort Worth and San Antonio metro regions. Total economic losses wereestimated to be more than $2.75 billion. Insured losses were expected to reach$2.0 billion. The Insurance Council of Texas said the $1.36 billion hail lossesin San Antonio made it the costliest insured hail event in state history on anominal basis.

Total economic losses from the extensive flash floodingacross parts of Texas due to substantial rainfall on April 18 were minimallyestimated at $1.0 billion. Public and private insurers expected hundreds ofmillions in losses.

The severe weather outbreak that swept the Central U.S. fromApril 24 to April 28 and the thunderstorms and torrential rains across thePlains, Midwest, Southeast, and Mid-Atlantic from April 29 to May 3 were eachexpected to have resulted in hundreds of millions of total economic and insuredlosses.

In South America, there were no reports of serious injuriesor fatalities from the excessive rains that led to renewed flooding acrossparts of Argentina and Uruguay from April 4 to April 10. However, it affectedmore than 15,000 people and damaged 4% of soybean crop in Argentina. Totaleconomic losses to agriculture in Argentina alone were estimated at $1.3billion.

The Mapocho, Maipo, Angostura, Rapel, Cachapoal andTinguiririca rivers in Chile overflowed due to torrential rains from April 15to April 18. Total economic damages were expected to reach at least $100million.

Millions of dollars of total economic damages were alsoexpected from the thunderstorms and excessive rainfall in parts of Uruguay fromApril 15 to April 25.

In Ecuador, the government noted more than $3.0 billion oftotal economic cost for damage and reconstruction caused by the majormagnitude-7.8 earthquake that struck the northwest coast on April 16.

Total economic and insured losses were expected well intothe millions of dollars from the low pressure across the Arabian Peninsula thatprompted significant flash flooding from April 8 to April 15.

In Asia, central and eastern sections of China experiencedthunderstorms and heavy rainfall from April 1 to April 8 that caused totaleconomic losses of $45 million. Several of the country's southern provincesalso suffered from severe convective storms from April 10 to April 12, whichresulted in total economic losses of $130 million. Total economic losses werelisted at $14 million from the severe thunderstorms that fell on parts of theYunnan and Guangxi provinces from April 16 to April 19. At least 10 southernChinese provinces had flooding due to heavy rainfall from April 20 to April28,with total economic losses listed at $97 million. Severe thunderstorms thataffected the Hubei, Henan, Shaanxi, Guangxi, Guizhou, and Shandong provincesfrom April 24 to April 27 were expected to have resulted in total economiclosses of $216 million.

Two major earthquakes struck Japan between April 14 andApril 16, causing at least 66 deaths and injuring more than 4,000 people. Totaleconomic losses from the event, including physical damage to residential andcommercial structures, vehicles and infrastructure, plus business interruption,were expected to top $10 billion, while total insured losses were estimated toexceed $2.0 billion.

Significant flooding and landslides due to premonsoon rainsswept northeast India from April 22 to April 25. The government in Assam aloneestimated flood damage at $150 million.

Several islands of the Fiji archipelago saw renewed floodingdue to heavy rainfall from two tropical disturbances and Tropical Cyclone Zena.Total economic losses were estimated into the millions of dollars.

Aon Benfield is part of Aon Plc.