Hailstorms Drive Record Insurance Losses as Experts Push for Better Detection and Prediction

Severe hailstorms in 2023 and 2024 have driven historic losses in the U.S., spotlighting hail as one of the most costly weather perils in insurance. Notably, Denver endured Colorado’s second-costliest hailstorm earlier this year, while Texas saw melon-sized hail that damaged infrastructure so severely it required road-clearing measures. Hailstorms, classified under severe convective storms (SCS) along with tornadoes and thunderstorms, contribute to a significant portion of U.S. insured losses annually, as explained by Dr. Victor Gensini, an expert in atmospheric science and meteorology professor.

The growing trend in hail-related losses can be attributed to several factors. Urbanization places more people and properties in vulnerable areas, while inflation raises repair and replacement costs. Climate change may also play a role; according to research, warmer temperatures could contribute to larger hailstones, even if overall hail frequency decreases. Such trends are already impacting insurance premiums and repair expenses, with damages from hailstorms exceeding $50 billion in 2023 alone. Critical infrastructures, such as solar farms, are also highly susceptible, with some suffering millions in losses from single events.

Ongoing research efforts aim to improve prediction and reduce hail risk. The ICECHIP initiative, funded by the National Science Foundation, will allow researchers to study hail formation directly in the Great Plains, gathering valuable data to enhance forecasting. Meanwhile, the proposed Center for Interdisciplinary Research on Convective Storms (CIRCS) plans to unite academic and industry stakeholders, offering the insurance sector data and tools to better anticipate and manage hailstorm impacts. Gensini notes that these advances could help insurance and reinsurance sectors mitigate hail risks, creating more resilient solutions for high-risk areas.