Extreme Weather 

Severe Weather Disasters threaten the biggest U.S. Insurers

Wildfires, hurricanes, tornadoes, hail storms, Nor’easters and mudslides — severe weather disasters are sinking the biggest U.S. insurers.

Over the past year, Allstate Corp. estimated its pretax catastrophe losses at $906 million, the most in a year, and Travelers Cos. reported its sixth-straight quarter in which costs rose above $300 million.

The series of severe weather events “exceeded our historical experience and our expectations,” Travelers Chief Executive Officer Alan Schnitzer said on Thursday. “We haven’t seen a string like that in the last decade.”

Allstate cited three major hail storms in Texas and Colorado in June as contributors to the recent surge in claims.

Travelers profit was $1.81 a share in the three months ending June 30. That missed the $2.41 average estimate of 20 analysts surveyed by Bloomberg.

We’ve seen a surge in natural weather-related disasters over recent years, and the significant economic effects that come with them.

insurance losses graph www.electroverse.net
NOAA National Centers for Environmental Information (NCEI)

Since 1980, the U.S. has sustained 219 billion-dollar climate-related disasters with cumulative costs exceeding $1.5 trillion dollars.

From 1980-2016, the annual average number of billion-dollar events was 5.8 whereas the most recent five years (2013-2017) saw an annual average of 11.6 events.

2018 is setting up to be the worst year yet, as we progress further into the Grand Solar Minimum.

[Featured Image: Marcus Kauffman]

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