Given the low NFIP take-up rates across rural areas, Aon has noted that the recent deadly Texas flooding is not likely to be a major insured industry loss event, though total economic losses may still reach into the billions of USD.
As widely reported by major news outlets around the world, central Texas experienced a rare 1-in-1000-year rainfall event early on July 4, triggered by the remnants of Tropical Storm Barry.
The resulting flash floods caused catastrophic damage and at least 120 fatalities, becoming one of the deadliest non-tropical cyclone flooding events seen in the U.S. in decades. Of all fatalities, 96 of them were reported in Kerr County, which experienced the worst impacts in central Texas.
According to Aon, roughly 173 people also remain missing as search and rescue operations continue.
Catastrophic flooding damage was seen along the Guadalupe River, including within the towns of Kerrville, Ingram, and Hunt.
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Entire roads and bridges were reportedly washed away, while multiple towns were nearly completely inundated.
Another deadly flash flood also hit the town of Ruidoso, New Mexico, damaging dozens of homes and causing three fatalities.
While overall insured losses may be low from these events, total economic losses are still expected to be substantial.
Aon explained, “Given the low NFIP take-up rates across this mostly rural area, this is not likely to be a major insured industry loss event.
“However, initial reports, local testimonies, and shared images from central Texas and New Mexico indicate substantial infrastructure damage.
“As a result, while insured losses may be low, total economic losses may still reach into the billions USD.”
Aon’s estimates align with those of AccuWeather, which pegged total damage and economic losses from the catastrophic Texas flash floods at between $18 billion and $22 billion.
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