Tornado Threat: Rising Frequency and Severity

P/C insurers face the prospect of another tornado season in which single devastating thunderstorms and tornado outbreaks result in losses of $1 billion or more, according to a new report from A.M. Best. It notes that annual tornado activity in 2008 was the worst on record. Of the 29 severe thunderstorm catastrophes in 2008 costing insurers an estimated $10.5 billion, two events each resulted in insured losses of $1 billion or more and another four severe weather events generated losses of $715 million or more, according to ISO/PCS. Not only was 2008 the worst year for catastrophe losses from tornadoes and related weather events, it was among the worst years on record for the number of tornadoes. Preliminary figures show 1,691 tornadoes in 2008 – second only to 2004, when about 1,820 tornadoes touched down in the U.S., according to the National Oceanic and Atmospheric Administration (NOAA). While hurricanes and earthquakes tend to generate higher losses per event, A.M. Best notes that tornadoes and related weather events have caused nearly 57 percent on average of all U.S. insured catastrophe losses in any given year since 1953. Check out further I.I.I. facts and stats on tornadoes.

2 thoughts on “Tornado Threat: Rising Frequency and Severity”

  1. Indeed tornadoes and hurricanes are doing more and more damages almost every year to lives and properties in coastal areas that resulted in billions of dollars in losses. Thanks for bringing out the valuable information on this topic.

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