Tornado losses are approaching those from hurricanes
Already in 2008, insured losses from severe weather systems have surpassed $1bn—with around $850m stemming from the Super Tuesday Tornado Outbreak in the mid-south on February, accroding to AM Best which reported the findings in its US tornado catastrophe review.
The report found that tornado losses approach those of hurricanes. In 2007, losses from these perils generated 69% of total insured catastrophe losses, said the report.
‘If the first quarter is any indicator of likely tornado activity for 2008, insurers may be headed again this year for another long season of increased claims activity and high catastrophe losses,’ said the report.
The number of tornadoes in the first quarter of 2008 surpassed the previous four year average. Furthermore, losses of $1bn and higher from single events are becoming more frequent, approaching losses from hurricanes.