Insured Losses From US Riots Could Surpass $1B

 Wednesday, June 3, 2020

 Reinsurance News

As nation-wide rioting continues in the US following the death of unarmed George Floyd in police custody in Minneapolis, comparisons with previous civil disorders in the country suggests it could be a relatively meaningful man-made loss for the re/insurance industry.

The death of George Floyd last Monday resulted in peaceful protests the following day in Minneapolis.

After several groups’ interactions with the police turned more violent the rioting started not just in Minneapolis but across much of the U.S., while demonstrations spread to parts of Europe.

Arguably the worst race riots in the U.S. since the 1960s, on Sunday evening curfews were in place across 40 American cities in some 23 states. So far, the riots have claimed at least five lives and as evidenced by news reports from across the country, there’s been some fairly sizeable damage to numerous buildings and businesses.

While no estimates of the costs of the damage is available yet, a look back at the costliest U.S. civil disorders shows that there’s potential for claims from the current riots, which are in multiple cities, to have easily run into the billions of dollars already.