Reinsurance News

US faces hundreds of millions in economic losses from severe multi-hazard weather

5th April 2024 - Author: Beth Musselwhite

Aon’s latest weekly catastrophe report predicts that the recent multi-hazard weather system, which affected the continental United States from March 29th to April 5th, may result in economic and insured losses totaling hundreds of millions of USD.

This prolonged event brought heavy rain and snowfall, strong wind gusts, hailstorms, flooding, and tornados.

California experienced severe weather conditions between March 29th and 31st, causing flooding that damaged numerous roads, including a partial collapse of the U.S. Highway 1 in Santa Barbara County.

Additional flooding incidents occurred in Oklahoma, Ohio, West Virginia, Kentucky, and Pennsylvania, resulting in one fatality and minor property damage.

Between April 1st and 2nd, the Storm Prediction Center received nearly 60 tornado reports, with damages reported across several states, including Oklahoma, Tennessee, Kentucky, and Georgia, resulting in another fatality.

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According to Aon, “More extensive straight-line wind damage occurred in dozens of locations, including St. Louis, Cincinnati, and Louisville.”

By April 3rd, northern Wisconsin and Michigan’s upper peninsula experienced heavy snowfall, with over 10 inches measured in several areas. New England also saw heavy snowfall, with some areas receiving over 18 inches.

Aon notes that the combination of snow and strong winds over the Great Lakes and New England significantly impacted travel conditions, leading to numerous vehicle crashes and flight cancellations.

Additionally, approximately 800,000 people lost power across Wisconsin, Michigan, and several Northeastern states.

Aon reports that officials in the northeast U.S. confirmed three weather-related fatalities, along with widespread downed trees and power lines.

“Given the extensive severe weather, flooding, and winter weather impacts seen from coast to coast in the U.S., total economic and insured losses may reach into the hundreds of millions USD,” Aon concludes.

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