Trends in Weather Related Catastrophe Losses
In the spring, researchers at the National Oceanic and Atmospheric Administration (NOAA) forecasted a 60% chance for an above-normal season, predicting 13-19 named storms, with 6-10 developing into hurricanes. [1] Much has been written about the increasing frequency and severity of weather-related events, such as hurricanes, droughts and severe storms. Weather-related events drove almost all of the insured natural disaster losses in 2019 and the costliest peril for insurers was severe convective storms. According to Aon’s 2019 Annual Report on Catastrophes, direct economic losses and damages from natural disasters last year was approximately $232 billion. Insured losses in the US were much lower, $71 billion, than the record $157 billion in 2017. Despite the reduction, Aon does note that the payouts from public and private insurance were higher than the 21st Century average.
The National Centers for Environmental Information (NCEI) – formerly known as the National Climatic Data Center (NCDC) – assesses the US climate each year. In June, they released their latest update noting that there have been ten billion-dollar weather and climate disasters in the first 6 months of the year.[2] All ten disasters were due to severe storms with damage caused by tornadoes, hail and high wind. This year marks the sixth consecutive calendar year when 10 or more separate events have been identified.
As significant catastrophe events appear to be on the rise, insurance industry researchers and catastrophe modelers continue to advance techniques for assessing and calculating risk. We’re all in this together, and we take great pride in the steps we take to help you prevent a claim. In the unfortunate case of a loss, our claims team is ready to jump into action knowing that each day costs your clients valuable time and money. Made up of nearly 30 members with an average of 20 years industry experience and 60 professional designations who are dedicated to property and inland marine claims, our team is dedicated to knowing exactly how to investigate, handle and settle these specialty claims.
In addition, our staff of loss control experts will work with you to help improve the safety and security of your clients’ operations for better risk management and potential cost savings. We will visit an insured’s location and help alleviate the risks that they might not even think about. For more information, contact your nearest Property & Inland Marine representative today.
Not only do we concern ourselves with the safety of our agents and clients, but we also try to make it easier for you to operate in a safer environment. Please review these Hurricane Clean Up and Recovery Safety Tips to learn how to avoid hazards and safely clean-up after a hurricane.
From various training sessions and education information such as our Safety Topics, we provide specialized services to help reduce loss potential, loss costs and control unsafe acts and conditions. To use these valuable resources, visit GAIG.com/LP.
An important value of your insurance coverage is the insurer’s ability and reputation for responding to and handling a claim. Great American’s Property & Inland Marine Division is dedicated to offering excellent claims service to insureds.
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