Insured losses from a severe mid-March weather outbreak in the United States are estimated between US$1 billion and US$3 billion, according to preliminary figures from Gallagher Re. The event marked the first billion-dollar severe convective storm (SCS) event of 2024.
Gallagher Re said the storm system brought at least 106 confirmed tornadoes, hail exceeding two inches in diameter, straight-line winds over 80 mph, and hundreds of wind-driven wildfires.
Damage affected residential, commercial, automotive, and agricultural assets in several parts of the Midwest, Southeast, and East Coast. Wildfires in Oklahoma and Kansas also resulted in additional losses.
In Oklahoma alone, close to 400 homes were either damaged or destroyed by fire. Two EF4 tornadoes were confirmed in Arkansas, the first occurrence of that intensity in the state since March 1997.
Hail measuring up to 2.75 inches was recorded in Missouri, while hail of at least two inches fell in Alabama, Illinois, Indiana, Kentucky, Louisiana, Missouri, North Carolina, and Texas. Gallagher Re said approximately 12,500 homes were exposed to large hail during the outbreak.
State Farm, the largest US writer of homeowners and personal auto insurance, reported more than 47,000 claims filed as of March 20. The company said hail was the leading cause of loss, followed by wind. The highest volume of claims came from Missouri, Kentucky, Illinois, Texas, and Indiana, according to spokesperson Roszell Gadson.
Guy Carpenter’s Catastrophe Resource Center said severe thunderstorm activity often increases in March as winter transitions to spring. The center indicated that additional storm systems were expected during the final weeks of the month.
In its recent insights, Guy Carpenter noted that the Southern US also faces elevated wildfire risks, particularly across northern Texas and Oklahoma, where fire conditions are considered extremely critical. Recent wildfires have already impacted areas such as Long Island, the Carolinas, Wisconsin, and coastal Texas.
Gallagher Re said underwriting results for US severe storms in 2024 showed improvement compared to 2023. The firm described a shift to a “new normal” for the SCS peril, with insured losses now regularly surpassing US$40 billion annually.
Over the past two years, insurers recorded 10 separate multibillion-dollar SCS events annually – a record number – resulting in combined insured losses of more than US$123 billion when adjusted for inflation, according to Gallagher Re.
The firm noted that while large hail typically accounts for 50% to 80% of insured SCS losses, tornadoes and straight-line winds continue to generate significant losses, especially in densely populated areas.
Earlier this year, Gallagher Re reported a global record of 21 weather events in 2024 that each caused insured losses of over US$1 billion. This figure exceeded the previous high of 17 events, recorded in both 2023 and 2020. Of those 21 events, 41% of the total insured losses – or US$64 billion – were attributed to severe convective storms.
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