May marked by major storms in U.S., causing $4 billion in insured losses

Severe windstorm events in the United States in May, including the tornado that devastated Moore, Okla., will likely have insurers paying out a minimum of $4 billion, according to Impact Forecasting’s latest monthly global catastrophe recap report.

The EF-5 tornado event (the strongest category) that struck Moore killed 24 people, injured 387, and damaged or destroyed up to 13,000 homes and structures, according to Impact, the catastrophe model development arm of Aon Benfield.

Total economic losses from the event are estimated at $5 billion, with insured losses of at least $2.5 billion, according to Impact.

Other tornado events during the month struck other parts of Oklahoma, and a large hail storm in Amarillo, Tex. caused at least $400 million in insured losses, the report notes.

Flash flooding in the U.S. Plains and Midwest states, and damaging winds in the Northeast were also recorded during the month. Total economic losses are expected to exceed $2 billion, with insured losses above $1 billion, according to the report.

“The month of May is historically the peak of tornado season in the U.S., and after a relatively benign start to the month, tornado activity became much more prevalent during the last two weeks,” Steve Jakubowski, president of Impact Forecasting, noted in a statement.

“Images from the aftermath of the EF-5 tornado in Moore, Oklahoma show the destructive power of the peril and how devastating impacts can be when tornadoes of such magnitude track through densely populated areas,” he added. “High insurance penetration will help to alleviate the pressure on those affected, and the recovery is already well underway.”

Several areas in Europe also had severe weather in May, including three tornadoes in northern Italy that injured at least 20 people and damaged hundreds of homes, the report says. Total economic losses from those events are estimated to be about $13.1 million.

Severe flooding also occurred in central Europe, in the Czech Republic, Germany, Austria, Slovakia, Poland, Hungary and Switzerland. Thousands of homes, structures and vehicles have been damaged, with the flooding continuing at print time. Total economic losses are estimated to reach in the billions of dollars, according to Impact.

May was also marked by heavy rain and thunderstorms in China, with about 171,000 homes damaged or destroyed, along with 600,000 hectares of crops. Total economic losses are estimated to be $2 billion.

In South America, Brazil continued to see significant drought conditions in May, the country’s worst since 1963. According to its  Ministry of National Integration, more than 50% of the region’s cattle died and agricultural crops were devastated. The Brazilian government has allocated $8.3 billion in aid and recovery, according to the report.

Drought was also recorded in New Zealand and Panama, the report notes.

Tropical Cyclone Mahasen also made landfall in Bangladesh in May, killing 52 people, after causing flooding in parts of Sri Lanka, India, and Myanmar. In Bangladesh, at least 136,132 poorly constructed homes were destroyed by the storm, resulting in economic losses to crops and fisheries listed at $200 million, the report says.

Hurricane Barbara also made landfall in southern Mexico, with at least 5,000 homes and other structures damaged from floodwater.

The full global recap report is available on Impact Forecasting’s website.