Unprecedented levels of damage from storms this year is upending US towns and the insurance industry

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Waves of severe thunderstorms in the U.S. during the first half of this year led to $34 billion in insured losses, an unprecedented level of financial damage in such a short time, according to Swiss Re Group.

File - Mariana Valenzuela sifts through the tornado damaged home of her aunt and cousins in Perryton, Texas, on June, 16, 2023. A series of severe thunderstorms in the U.S. resulted in $34 billion in insured losses during the first half of the year, the highest amount ever for insured losses in the period, according to Swiss Re Group. Waves of severe thunderstorms in the U.S.

“The effects of climate change can already be seen in certain perils like heatwaves, droughts, floods and extreme precipitation,” Swiss Re Group Chief Economist Jérôme Jean Haegeli said in a prepared statement.

Reinsurers are the insurance industry's insurers, covering losses that could upend an individual company. Munich Re and Swiss Re have operations across the globe, including the U.S. The increasing frequency of extreme weather has created disruptions within the insurance industry and some insurers have retreated from states that are getting hit hard, such as Florida and California.

Last month Travelers said catastrophe losses doubled in its most recent quarter and the company, considered a bellwether for the insurance industry due to its size, said it lost money.

 

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