US Faces Mounting Losses from November Storms as Extreme Weather Intensifies

In early November, severe storms swept through several US states, triggering widespread property damage and causing potential losses of hundreds of millions for insurers, according to a report by Aon. Oklahoma bore the brunt of the storm activity, with two EF-3 tornadoes, each packing winds exceeding 140 mph, leading to extensive damage across Oklahoma City and Harrah. Additional tornadoes were confirmed in Tulsa and Fayetteville, Arkansas, while persistent rainstorms and repeated thunderstorms caused urban flooding, particularly affecting the St. Louis area.

In California, a separate wildfire event known as the Mountain Fire escalated in Ventura County, endangering thousands of homes as dry, gusty conditions fueled the blaze. While structural damage had yet to be confirmed, critical infrastructure remained at risk, and over 14,000 residents were evacuated as a precaution.

This rise in extreme weather events continues to strain insurers, with catastrophe-related losses in the US alone reaching $80 billion out of $102 billion globally in the first nine months of 2024. Despite recent hurricane losses, Aon reported that strong capitalization across the industry, bolstered by strategic rate increases in 2023, leaves insurers well-prepared to absorb recent impacts. With a policyholder surplus of $1.1 trillion, the reinsurance market is expected to remain stable, potentially seeing flat or slightly lower renewal rates for 2025.