Insurers face losses between $1 bn and $3 bn from a severe weather outbreak in mid-March, according to Gallagher Re.
The event involved tornadoes, wildfires, strong winds, heavy rain, and winter storms. It marked 2025’s first billion-dollar severe convective storm (SCS) event.
Gallagher Re confirmed at least 106 tornadoes, hail over two inches wide, and winds exceeding 80 mph. Wind-driven wildfires were also reported across Oklahoma and Kansas.
The highest losses affected homes, businesses, vehicles, and agriculture in the Midwest, Southeast, and East Coast. Wildfires destroyed or damaged nearly 400 homes in Oklahoma.
Arkansas recorded two EF4 tornadoes for the first time since March 1997. Missouri saw hail as large as 2.75 inches.
Communities across Alabama, Illinois, Indiana, Kentucky, Louisiana, Missouri, North Carolina, and Texas were hit with hail over two inches wide. Gallagher Re estimated 12,500 housing units were exposed.
State Farm, the largest U.S. insurer for homes and personal autos, reported over 47,000 claims through March 20. Hail caused the most losses, followed by wind. Missouri, Kentucky, Illinois, Texas, and Indiana saw the most claims.
Aon tracked storms from March 14-16 and again from March 18-19, noting widespread wind gusts and severe thunderstorms.
Insured losses likely reached hundreds of millions. The Midwest and Southeast were worst hit, with EF4 and EF3 tornadoes in Missouri, Arkansas, Mississippi, and Alabama.
Over 500,000 power outages were reported. Oklahoma’s dry conditions fueled 130 wildfires in 44 counties.
March often sees increased thunderstorm activity. Guy Carpenter’s Cat Resource Center said more storms were expected in late March. Gallagher Re noted that U.S. SCS losses have reached a “new normal,” with annual insured losses now exceeding $40 bn.
The past two years each saw 10 multibillion-dollar SCS events. Adjusted for inflation, combined insured losses topped $123 bn.
Large hail still drives 50% to 80% of U.S. SCS losses, but tornadoes and straight-line winds continue to generate heavy regional losses, especially in urban areas.
