Aon has reported that recent severe convective storm (SCS) activity is expected to drive economic and insured losses into the hundreds of millions of dollars in Europe, while similar events in the United States are projected to result in losses in the tens of millions.
According to the firm’s weekly catastrophe report, since June 21, various parts of Europe have experienced SCS events that produced large hail, heavy rainfall, and damaging winds, resulting in both casualties and material damage.
The most impacted countries were reportedly France, Germany, Switzerland, Italy, Austria, Czechia, Poland, and Slovakia.
“Aggregated economic and insured losses from the multiday SCS outbreak are expected to reach hundreds of millions EUR, pending future damage assessments and the development of storms anticipated to impact the region on June 26,” Aon said.
Insurers in France, particularly in the departments of Pyrénées-Atlantiques, Seine-Maritime, and Landes, may face notable payouts due to large hailstones that caused significant material damage.
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Aon’s weekly catastrophe report also highlighted several rounds of severe thunderstorms and heavy rainfall in the central and eastern United States between June 20 and 25.
Notably, a powerful derecho tore through North Dakota and Minnesota, producing extreme wind gusts and property damage.
The total economic and insured losses in the U.S. are anticipated to reach into the tens of millions of USD, according to Aon.
Frequent readers of Reinsurance News will know that SCS events have surged in both frequency and severity in recent years, driven by warming air, higher humidity, and expanding urban development.
For the reinsurance industry, rising loss exposure has inflated reinsurance premiums, prompted tighter underwriting criteria, reduced capacity, and forced reinsurers to elevate severe convective storms to the same priority level as hurricanes or wildfires.
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