Aon catastrophe report shows just how badly the economy was hit in May

Economic losses from damage due to natural catastrophes in the US are expected to exceed $4 billion as a result of severe weather events in May, according to recent data from Aon Benfield.

Meanwhile, public and private insurers face a total payout bill of $3 billion.

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These figures however, are subject to reassessments, reinsurer Aon Benfield said in a PRNewswire report.

The report noted significant activity in the Denver metro region in Colorado, in particular, which accounted for $1 billion of total losses for the month. Payouts reached $1.4 billion as softball sized hail caused severe damage to property.

Extensive damage was also observed in parts of the Plains, Midwest, Southeast and the Mid-Atlantic. 

In Asia, Sri Lanka was hardest hit by a tropical cyclone that led to significant rainfall, leaving more than 200 fatalities and destroying 22,000 homes.

“…The events seen in the month of May provided a potential precursor to some of the impacts typically experienced in the region during the months of June, July and August…As catastrophe models become more prevalent in Asia, the re/insurance industry is better able to provide a clearer understanding of the risks that the flood peril increasingly poses in the region,” Claire Darbinyan, impact forecasting associate director and meteorologist at Aon Benfield said in the report.

She went on to say, “The opportunity exists for the industry to engage with governments, communities and businesses to share their expertise to help mitigate the effects of such natural disasters.”


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