RMS: Insured Losses From Late April Tornadoes Could Reach $6 Billion
|Copyright:||(c) 2011 A.M. Best Company, Inc.|
|Source:||A.M. Best Company, Inc.|
As insurers continue to process and pay claims related to a month of violent storms, Risk Management Solutions estimated insured losses from a twister outbreak
If the top of the estimate is reached, the storms will be the costliest tornado and thunderstorm event in
The estimate includes losses from personal, commercial, automobile, and industrial lines of business in
"This tornado outbreak is set to become one of, if not the, costliest severe convective storm event in U.S. history,"
Should losses exceed
Nonetheless, the industry remains well capitalized, said
That upper end of the RMS estimate is above earlier estimates by AIR Worldwide, which has said insured losses from the severe thunderstorms and tornadoes
Those claims numbers will grow, Luedke said. In addition, the carrier is dealing with claims from less-publicized catastrophe activity across the country, and has more than 4,000 claims representatives currently working across
April was an unusually active month for tornadoes. Earlier in the month, a storm system brought violent weather to
Since 1989, there has been a rising trend in insured losses from severe thunderstorms and related weather events, attributed to rising property values, greater building density and more insurance coverage, according to the A.M. Best Catastrophe Review special report.