Severe convective storms across central U.S. states in mid-May, including destructive tornadoes and hail, likely caused insured losses between $4 bn and $7 bn, according to Gallagher Re Chief Science Officer Steve Bowen.
This brings the total annual industry losses above $20 bn for eight of the past 9 years.
Guy Carpenter reported that insurers are expected to review premium levels and underwriting practices in higher-risk regions following these losses.
The storms between May 15 and 18 included three EF3 tornadoes and one EF4, damaging homes, businesses, and infrastructure across Kentucky, Missouri, Illinois, and Arkansas. The firm said the event may be the most expensive severe weather incident of the year.
Aon said storms from May 14 to 17 caused damage “well into the billions,” with dozens of confirmed tornadoes, winds approaching hurricane strength, four-inch hail, and the largest dust storm in Chicago since 1934.
It could become one of the costliest severe weather outbreaks for insurers. Insured losses from the May 18–20 event are also expected to reach several billion dollars.
These followed a March storm that caused an estimated $5 bn in losses, ranking as the seventh-most expensive in U.S. history.
State Farm had received more than 27,150 property and auto claims from the May 15–17 storms by May 22. Over 7,500 were filed in Missouri, where a 22.8-mile EF3 tornado struck northern St. Louis and continued into Illinois, generating 4,400 additional claims. St. Louis City Comptroller Donna Baringer said the tornado may have damaged or destroyed around 5,000 buildings.
In Kentucky, State Farm reported 2,100 claims, including major damage in London from a likely EF4 tornado. Company spokesperson Justin Tomczak said the most severe claims came from Missouri and Kentucky.
Hail was the most common cause of damage, followed by wind, including straight-line gusts and tornadoes. Wisconsin had over 4,000 claims, with thousands more in Indiana and Michigan.
American Family Insurance received 7,345 claims by May 22, of which 4,329 came from property policyholders. The company sent mobile claims teams to Wisconsin and Missouri, its most affected states.
Guy Carpenter noted that four of the 25 costliest severe storm events since 1990 occurred mainly in Missouri, with typical inflation-adjusted insured losses between $4 bn and $6 bn.
About 25% of those events were more expensive. Severe storms often continue into mid-June, the usual seasonal peak.
By mid-May, 731 tornadoes had already been reported—nearing the record for this point in the year and indicating much higher-than-normal activity.
The Insurance Information Institute said the most expensive tornado-related insurance event remains the August 2020 Midwest derecho, which caused $11.16 bn in losses in 2024 dollars. Five of the ten largest tornado-related events occurred within the past two years.
Bowen at Gallagher Re commented that labeling severe convective storms as a secondary peril does not reflect their ongoing impact, calling them a primary peril.
