The Friedman Blog

Posted on 06/06/2016, by Jeremy Edsall

Severe Weather Events More Frequent, Pose Risk to Businesses

When you think of severe weather capable of causing widespread property damage you might think about hurricanes first, but in insurance claims costs, lightning, hail, thunderstorms, and tornadoes account for most of the losses. The damages caused by spring storms and tornadoes in 2011 alone made it the 4th costliest event in US insurance history and 5th costliest in global insurance history. Thunderstorm and tornado losses were 2.5 times above the 30 year average in 2011. The average thunderstorm loss has increased 5 times since 1980. In total there were 171 disasters in 2011 alone. Five of the 14 most expensive catastrophes in the world were in the last 2 years.

Researchers warn that with the unpredictable state of the weather we need to be aware of everyday weather and not just seasonal or regional weather events like “hurricane season” or “tornado alley”. For some parts of the U.S. the potential for severe weather capable of causing floods, damaging wind and hail is increasing. Climatologists see the number of days with conditions that favor the outbreak of severe storms increasing over the next one hundred years. In places like Atlanta and New York days that have favorable conditions for severe storms could double. Areas in and around the Gulf of Mexico which have high humidity will have the most potential for seeing increases in severe weather formation.

Sources: ScienceDaily (Dec. 4, 2007) 
Insurance Information Institute

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