In what is currently regarded as the costliest severe weather event of 2025, a widespread tornado outbreak across the U.S. Midwest and Southeast has resulted in substantial economic and insured losses, with Cotality estimating that approximately 63,000 properties may have been damaged nationwide and total reconstruction costs nearing $16 billion.
The outbreak, which began on May 15, produced at least 33 confirmed tornadoes, causing severe damage across Kentucky, Missouri, Illinois, and Arkansas.
At least 28 people have been reported dead, with dozens more injured.
In addition to the tornadoes, large hail, destructive winds, and heavy rainfall affected broad swaths of the Midwest, compounding the devastation.
Cotality has estimated that hail greater than one inch in diameter affected over 40,000 properties across the nation between May 15 and May 18.
Guy Carpenter has since noted that thousands of buildings in St. Louis were damaged and over 600,000 customers were left without power across the affected region.
Major urban centres were also impacted, with both residential and commercial properties sustaining financial losses.
“Damages from this event will likely put the season above average in terms of insured losses. The economic impact extends beyond insured losses, as uninsured damages, business disruptions, and infrastructure repairs will contribute to the overall cost of recovery. Insurers will be evaluating premium adequacy and underwriting standards in high-risk areas as a result of the high losses from this event,” Guy Carpenter observed.
BMS Group Senior Meteorologist Andrew Siffert explained the meteorological drivers behind the event, stating, “Over the last few weeks, an omega block has controlled much of the weather pattern across the U.S., which has limited severe weather across much of the Central and Northern Plains, increasing the wildfire concern over the region.
“With the breakdown of this omega block, the severe weather season is back. There will likely be three weeks of heightened severe weather, with a series of storm systems adding to the insurance industry’s losses in 2025.”
“After a relatively quiet few weeks of severe weather across the U.S., severe weather is back with what is likely the most significant outbreak of severe weather that will cost the insurance industry over $5 billion+ in damages, making it likely the most costly severe weather event so far in 2025 after more severe weather damages occur today as severe weather moves over an even more populated area along the Mid-Atlantic and Ohio River Valley,” Siffert added.
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