Best’s Briefing: U.S. P/C Insurers Able to Dig Out From Accumulation of Winter Weather Claims
OLDWICK, N.J.--(BUSINESS WIRE)--The severe winter weather that gripped much of the United States from early January through mid-February caused economic losses estimated in the billions of dollars, with meaningful portions of the damage believed to be insured. Aon Benfield reported an estimate of $1.4 billion in insured losses just for January, when the unusual shift in the polar vortex spread freezing temperatures to all 50 states and winter storms rolled across the Southeast. Insurers now face claims from a series of catastrophe events that while significant in the aggregate, may fall short of reinsurance triggers and leave primary writers to bear the full burden.
This winter has been unique in both severity and geographic reach, with frigid temperatures, snow and ice extending far into Southern states that were ill-prepared for such conditions. The result has been extensive property damage from fallen trees, frozen pipes, structural collapses and countless motor vehicle accidents. Further losses may arise from business interruption, as vast areas were paralyzed by power outages and disruptions to travel.
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