Severe U.S. weather likely first billion-dollar economic loss event for 2014

Severe weather and flash flooding in the United States last month likely were the year’s first billion-dollar economic loss event, Impact Forecasting, the catastrophe model development arm of Aon Benfield said Wednesday.

In its monthly global recap report, the firm noted that over several days in April, roughly 70 tornadoes touched down across more than 20 states.

Economic losses are expected to surpass $1 billion, while insured losses will more likely be in the hundreds of millions of dollars, Impact Forecasting said. All figures are in U.S. dollars.

Other severe weather in the U.S., in the Plains, Midwest and Mississippi Valley caused significant damage, especially from hail. Total economic losses are estimated to be $950 million, with insured losses of around $650 million.

Last month, severe thunderstorms also struck China, with more than 40,000 home and thousands of hectares of crops damaged. Economic losses are set to be roughly $1 billion.

Cyclone Ita, which made landfall in northern Queensland in Australia, also caused total economic losses of about $1 billion, mostly in the agricultural sector, Impact Forecasting reported. The Insurance Council of Australia has also reported 680 claims with payouts estimated at $7.9 million.

Also in April, an 8.2-magnitude earthquake struck in Chile, causing damage and a small tsunami. Total economic losses from the event, which damaged 13,000 homes, are expected to be less than $100 million, Impact Forecasting noted.

Additional earthquake events occurred in Nicaragua, Mexico, and China during the month.

Torrential rains also led to major flash flooding and landslides in northern Afghanistan, last month, while Romania, Serbia and Bulgaria each declared states of emergency over heavy rains.