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Aon Benfield: Claims from Oklahoma Tornado Could Match Joplin in 2011

Source: A.M. Best

Posted on 28 May 2013 by Neilson

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Oklahoma tornado loss estimatesWith early damage estimates from the tornado in Moore, Oklahoma nearing $2 billion, reinsurance broker Aon Benfield has warned that the insured losses from the storm could match those from the tornado that hit Joplin, Mo., in May 2011.

The Joplin storm set a record for tornado-related insurance claims, Aon Benfield said. Earlier this year, the Missouri Department of Insurance offered agreement with expectations that claims paid out for the Joplin disaster could total $2 billion.

Lloyds declined to offer a loss estimate for the Oklahoma tornado. It is too early to say what the financial impact may be," Lloyd's said in a statement.

Up to the end of April, the tally for tornadoes for the year in the United States came to just more than $2 billion, Aon Benfield said. The Moore tornado occurred in May.

Insured losses from convective storms in the United States have exceeded $10 billion each year since 2008, Aon Benfield said. The highest amount was $27 billion in 2011, followed by $14.5 billion in 2012. Those two years were the most expensive in history for tornado claims, Aon Benfield said. The total for 2009 hit $10 billion after an adjustment for inflation.

Tornado-related activity has recently fallen in the United States, said Aon Benfield, which pointed to the effects on drought and this year's cold spring. Previously, the 1,050 tornadoes that occurred between June 2010 and May 2011 set a record for frequency and strength, the broker said.