Tornadoes Drive Insured Losses Over $105B This Year
Wednesday, December 22nd, 2021 Catastrophe PropertyDevastation from tornadoes that slammed parts of the United States this month will push the insurance industry’s 2021 bill for weather-related claims well above the predicted $105 billion, industry experts said, and premiums should rise on worries that climate change will drive more severe weather.
Tornadoes tore a 200-mile path through six states in the Midwest and South, demolishing homes and leveling businesses, causing $5 billion in insured losses, according to preliminary estimates.
Climate change has been driving more so-called "secondary peril" weather events that are smaller than hurricanes, for instance, but less predictable.
Other secondary perils include small to mid-size localized events like wildfires, winter storms and hail storms.
These events create risk management challenges for insurers and ultimately inflate premiums, said some insurance experts.
