June 6, 2014 by Canadian Underwriter
Catastrophe modeling firm RMS is warning that hail is causing considerable losses in the United States and Canada and that insurers should be considering reinsurance for such storm events.
This year’s severe storm season has been relatively quiet so far, RMS said. Only one event so far has produced insured losses of more than $1 billion.
Among the events that have occurred, hail and straight-line wind perils have occurred six times more often than tornadoes, the firm noted.
Wild photos of storms and hail that plagued the Plains yesterday: http://t.co/CFmd20qNbJ (Photo: @KNEBStormCenter) pic.twitter.com/GLyHoWhJA2
— USA TODAY (@USATODAY) June 4, 2014
“This week’s severe storms in Tornado Alley and the surrounding regions is yet another example of how hail is no longer an attritional peril,” Matthew Nielsen, a director and meteorologist with RMS said in a statement.
States affected this past week include Nebraska, Ohio, Iowa, Indiana, Kansas, and Missouri (all parts of Tornado Alley) with eastern Nebraska and western Iowa the worst hit by the largest hail, RMS said.
15 min.-long #hailstorm produces tennis ball-sized ice-chunks, 4500 smashed cars, and big insurance hassles: http://t.co/zotPLMEsBd
— I.I.I. website (@iiiorg) June 4, 2014
“Widespread hail events in the U.S. are not uncommon and can cause considerable damage to cars, homes, and buildings, while single hail events can produce very large losses,” Nielsen added. “With 60% of average annual storm losses in the U.S. coming from hail, insurers should consider looking at reinsurance for these events.”
According to RMS, severe storms contribute to more than a third of natural catastrophe losses in both the U.S. and Canada. By late May, there’s an 80-90% chance of a severe thunderstorm occurring any day somewhere in the U.S. and a 92% chance each year that a severe weather event will cause insured losses that exceed $1 billion, the firm noted.
Impressive hail today, northeast of Minatare. #NEwx pic.twitter.com/dsIuKg6Fbk
— KNEB Storm Center (@KNEBStormCenter) June 3, 2014
Some of the hail from Blair, Ne. pic.twitter.com/1HCcbUymSG
— WoodhouseAutoFamily (@WoodhouseAuto) June 3, 2014
According to @WoodhouseAuto, 4500 vehicles pummeled by hail in Blair, NE. Over $152 million dollars of inventory. pic.twitter.com/oDsIdsoS0K
— SevereStudios (@severestudios) June 4, 2014
No words. #Hail did this. Bonkers. RT @ivory_doug: Hail damage in Blair, Nebraska last night.@WCL_Shawn #NEwx pic.twitter.com/hxYqIgDgYq
— Shawn Reynolds (@WCL_Shawn) June 4, 2014
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