Insurance claims set to exceed $1bn following U.S. severe thunderstorms and flooding

Spate of thunderstorms and tornadoes cost U.S. economy more than $3bn in May

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Jun 04, 2015, 11:07 ET

CHICAGO, June 4, 2015 /PRNewswire/ -- Impact Forecasting, Aon Benfield's catastrophe model development team, today launches the latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during May 2015. Aon Benfield is the global reinsurance intermediary and capital advisor of Aon plc (NYSE:AON).

The report reveals that powerful thunderstorms caused major flooding across the U.S. states of Texas and Oklahoma during the month, killing 41 people and damaging more than 5,000 homes in Texas alone, resulting in what proved to be the wettest May on record for both states.

Meanwhile, severe weather prompted 412 preliminary reports of tornadoes by the U.S. Storm Prediction Center – which would equal the highest monthly number of U.S. tornadoes since April 2011 (758).

Total aggregated severe thunderstorm and flood economic losses for May were expected to near USD3.0 billion, with overall insured losses set to easily exceed USD1.0 billion despite low flood insurance penetration in parts of Oklahoma and Texas.

Steve Bowen, Impact Forecasting associate director and meteorologist, said: "A meteorologically active month around the globe in May was highlighted by record rainfall from persistent thunderstorms across the U.S. states of Texas and Oklahoma. The rains, which were 500 percent greater than normal values for the month of May in some locations, led to major riverine and flash flooding in areas that had long been mired in a multi-year drought. In the immediate aftermath of the event, Impact Forecasting was able to successfully implement flood extents and scenarios into our U.S. flood model for deployment to clients."

Further natural disaster events to have occurred in May included:

Significant flooding in China that killed 81 people, damaged or destroyed nearly 100,000 homes, and resulted in total combined economic losses estimated to be greater than USD3.0 billion.
Flash floods In Australia that caused widespread damage to property and agricultural interests. The Insurance Council of Australia reported that insurance payouts totalled AUD360 million (USD280 million).
An intense heatwave in India that impacted multiple states and killed at least 2,500 people – one of the highest death tolls from a heatwave recorded in recent history.
A major magnitude-7.3 earthquake near Mount Everest on May 12, which killed at least 131 people in Nepal, India, and China, bringing the death toll from the April 25 and May 12 earthquakes to nearly 9,000.
Super Typhoon Noul, which swept across the Philippines, Yap, and Japan's Okinawa, killing two people and causing Philippines losses of PHP16.3 million (USD366,000), and Okinawa crop losses of JPY2.8 billion (USD23.2 million).
Tropical Storm Ana, which made landfall in the U.S. state of South Carolina with minimal impact.

To view the full Impact Forecasting May 2015 Global Catastrophe Recap report, please follow the link:

http://bit.ly/1RMcF3F

Along with the report, users can access current and historical natural catastrophe data and event analysis on Impact Forecasting's Catastrophe Insight website, which is updated bi-monthly as new data become available:

www.aonbenfield.com/catastropheinsight

Further information

For further information please contact the Aon Benfield PR team: Andrew Wragg (+44 207 522 8183 / 07595 217168) David Bogg or Alexandra Lewis

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