US Winter Storm Insured Losses Estimated at $6.7 Billion

Storm's Financial Toll Revealed

Catastrophe risk modeling firm Karen Clark and Company (KCC) has estimated that the recent major winter storm in the United States resulted in $6.7 billion in privately insured losses. The storm impacted more than 30 states with significant damage reported.

Widespread Damage Across the US

The January storm brought heavy snow, sleet, and freezing rain across the eastern and southern U.S. This led to extensive power outages, primarily from east Texas to Kentucky, and significant damage from burst pipes in southern states where buildings are less equipped for extreme cold. Texas and Tennessee experienced the largest estimated losses.

Impact on the Insurance Sector

This event ranks as one of the costliest in recent times, though it remains below the $15 billion to $20 billion in losses from the 2021 winter storm. The consistent rise in natural catastrophe losses continues to strain insurance industry profits, as companies face large payouts for property damage and business interruption claims.

Concluding Outlook

The $6.7 billion loss estimate underscores the increasing financial risk from severe weather events. The insurance industry will continue to monitor the frequency and severity of such catastrophes, which are expected to drive annual global insured losses higher in the coming years.

FAQ

Q: What was the total estimated insured loss from the winter storm?
A: Karen Clark and Company estimated the privately insured losses at $6.7 billion.

Q: Which states were most affected financially?
A: The largest estimated insured losses occurred in Texas and Tennessee.

Source: Reuters via Investing.com