A spate of severe convective storm (SCS) and flood activity in the US across the Great Plains, the Midwest and the Southeast over the first week of May will cause billions of dollars of economic and insured losses, according to Aon.
In particular, Aon noted that heavy rainfall at the start of the month has exacerbated ongoing, significant flooding across eastern Texas, including Houston.
In its weekly cat report, Aon detailed powerful storms and violent tornadoes causing extensive damage in Texas, Oklahoma, Michigan, Tennessee and the Carolinas.
The figures come as secondary perils, and in particular SCS, continue to plague insurers’ results.
As Aon analysis earlier this year shows, seven of 2023’s 10 largest global insured loss events were caused by SCS activity, of which six occurred in the US.
According to Gallagher Re, SCS created almost 60% of global insured losses during 2023.
As reinsurers have restructured programmes over the past 18 months, lifting retention points to protect themselves from volatility, primary insurers have borne the brunt of frequent SCS activity.