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U.S. winter weather causes $1.5 billion in insured losses in January


February 6, 2014   by Canadian Underwriter


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Severe winter weather in the United States in January caused insured losses in excess of $1.5 billion, according to the latest global recap report from Aon Benfield’s catastrophe model development arm, Impact Forecasting.

The most severe and costliest weather occurred in the second week of the month, when more than 51cm of snow fell in the Great Lakes and Ohio Valley, which along with severe cold and wind caused property damage and extreme travel delays, the report notes.

Total direct economic losses are estimated at $3 billion, with insured losses around $1.4 billion.

Three other stretches of weather caused more than $500 million in economic damages and nearly $200 million in insured losses. Business interruption losses were high because of delayed transport and closed commerce, Impact Forecasting notes.

“The current winter season in the United States has already become the costliest year for the winter weather peril since 2011,” Steve Bowen, senior scientist and meteorologist with Impact Forecasting noted in a press release.

“With higher-than-average snow totals, ice, and some of the coldest temperatures in nearly two decades affecting much of the country during January, the combination of physical damages and business interruption costs have quickly aggregated into direct economic losses well into the billions of dollars. The elevated losses this year are a reminder to insurers that the risks associated with the winter weather peril remain significant.”

Winter conditions in Asia also caused widespread flooding in January, according to the report. In Europe, windstorms Anne and Christina also brought heavy rains and strong winds to the United Kingdom, France and Scandinavia. Economic damages in Ireland are estimated at $405 million,  the report suggests.

Following a 6.2-magnitude earthquake, The New Zealand Earthquake Commission also received at least 2,876 claims with payouts expected to reach the millions of dollars.

Extreme heat and bushfires in January also led to 56 homes being destroyed, and the Insurance Council of Australia to declare a catastrophe with expected payouts of about $13 million.


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