Wildfire losses may top $1 billion: Aon
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California wildfires and severe storms in the Midwest and West regions of the United States since late July could cause insured losses of more than $1 billion and $100 million respectively, according to a report Friday from Aon P.L.C.’s Impact Forecasting unit.
Other storms in the Southwest could add another $100 million in losses, according to the weekly catastrophe report.
An intense and fast-moving wildfire which started outside Redding, California, on July 23 has destroyed more than 1,500 structures, Aon said.
Insured losses are expected to near or top $1 billion “given the number of structures and vehicles affected,” the report said, as well as “historical comparisons to fires of similar size and magnitude in California.”
The report notes that the fire follows the costliest year recorded for wildfire losses in 2017, when more than $14 billion in claims was paid.
Previously, only ten individual fires have caused more than $1 billion in losses, five of which have occurred in the past 36 months, Aon said.
Hail also caused substantial damage. Powerful thunderstorms across parts of the U.S. Rockies and Midwest from July 26-29 included hail larger than baseballs, straight-line winds gusting beyond 90 mph, and several tornado touchdowns, the report said.
Colorado, Wyoming, Nebraska, Kansas, Montana, and South Dakota all saw storm damage, with total insured losses were expected to exceed $100 million, the report said.
On July 30 and 31, severe thunderstorms led to widespread hail damage around Albuquerque, New Mexico, with reports of hailstones larger than golf balls, severely damaging vehicles and homes, the report said.
Insured losses from these storms may be similar to those from the earlier Midwest storms, on the order on $100 million, the report said.
