Tornadoes in Oklahoma caused $2 billion in insured claims payouts last May

Tornadoes that hit Oklahoma last May contributed to the state seeing the highest costs for natural disaster-related insurance payouts in 2013, the Insurance Information Institute said Tuesday.

“Oklahoma’s policyholders received nearly $2 billion from their insurers in 2013 after multiple, deadly tornadoes struck Oklahoma, changing forever communities such as Moore,” Dr. Robert Hartwig, president of the I.I.I. and an economist, said in remarks today to the National Tornado Summit in Oklahoma City.

Outside of that state, insured natural disaster-caused insurance claims payouts in 2013 were highest in Texas ($1.51 billion), Colorado ($907 million), Minnesota ($845 million) and Nebraska ($773 million), according to the institute.

Total natural disaster-caused insurance claims payouts in the United States came to $12.79 billion in 2013, with $10.27 billion attributable to tornadoes and severe thunderstorms. The rest of the losses came from events such as winter storms and wildfires.

For the period of 2000-2013, Oklahoma cumulatively reached $9.8 billion for insured claims payouts from tornado, thunderstorm and/or hail catastrophes, behind Texas, which had $16.9 billion for the same period, the institute said.

“Since 2000, insurers have paid $135 billion on millions of claims in all 50 states from severe convective events including tornadoes,” the organization noted.

“Hurricanes like 2012’s Sandy generate headlines, even though it is the frequency and severity of tornadoes that has grown in recent years, reaching its peak in 2011, when some of the deadliest and costliest tornadoes in U.S. history swept through cities such as Tuscaloosa, Alabama, and Joplin, Missouri,” Hartwig stated. Alabama and Missouri policyholders received more than $3 billion from their insurers in 2011.

An analysis by the institute of U.S. natural disasters dating to 1983 found that, in any given year, 36% of all natural disaster-caused claims payouts arose because of tornadoes, according to Hartwig.

In 2011, home insurers paid out $1.22 in claims and expenses for every $1 they earned in premium. – Bob Hartwig #NTS2014 @iiiorg

— Jim Camoriano (@SF_JimC) February 11, 2014

Oklahoma is the most expensive land-locked state for home owners insurance. #NTS2014

— Rick Smith (@ounwcm) February 11, 2014

Oklahoma ranks No. 3 in most federally declared disaster areas in USA Bob Hartwig – @iiiorg #NTS2014

— Jim Camoriano (@SF_JimC) February 11, 2014

Locations of 2013 tornadoes in the US #NTS14 pic.twitter.com/WG3gJJjFEA

— Tornado Summit (@tornadosummit) February 11, 2014

@Bob_Hartwig “Oklahoma the costliest landlocked state for homeowners insurance. Idaho the cheapest state.” #NTS2014 pic.twitter.com/oLr0PEYukK

— Tornado Summit (@tornadosummit) February 11, 2014

@Bob_Hartwig “the costliest tornado events in history have all happened since 2001” #NTS2014 pic.twitter.com/ynFrC6Tixl

— Tornado Summit (@tornadosummit) February 11, 2014

@Bob_Hartwig “Oklahoma second for insured losses from severe weather from 2000-2013 with $9.8 billion” #NTS2014

— Tornado Summit (@tornadosummit) February 11, 2014

Thunderstorm insured loss trends #NTS2014 pic.twitter.com/63h7EWJjFg

— Tornado Summit (@tornadosummit) February 11, 2014

@Bob_Hartwig “there were 128 natural disaster events in 2013” #NTS2014

— Tornado Summit (@tornadosummit) February 11, 2014

@Bob_Hartwig “over last 30 years Florida has largest share of CAT losses” #NTS2014

— Tornado Summit (@tornadosummit) February 11, 2014

@Bob_Hartwig Oklahoma led the country in insured CAT losses in 2013 with almost $2 billion

— Tornado Summit (@tornadosummit) February 11, 2014

@Bob_Hartwig 2011 the costliest year ever for thunderstorms/tornadoes at $26 billion

— Tornado Summit (@tornadosummit) February 11, 2014

@Bob_Hartwig from @iiiorg begins his presentation on insurance trends pic.twitter.com/unnFIKklSh

— Tornado Summit (@tornadosummit) February 11, 2014

Insurers paid $135B since 2000 from severe convective events incl. tornadoes. My Natl. Tornado Summit presentation: http://t.co/WKRn8jCXq1

— Robert Hartwig (@Bob_Hartwig) February 10, 2014

A lot of data today, but insurance is all about people, not numbers. – Bob Hartwig @iiiorg #NTS2014

— Jim Camoriano (@SF_JimC) February 11, 2014

@Bob_Hartwig presents check to Deidre Ebry & daughters for Moore OK school relief. #NTS2014 All about caring for kids pic.twitter.com/xIP7CH9tfd

— Lynne McChristian (@InsuringFLA) February 11, 2014