May storm losses to 'easily exceed' $1 billion

Vehicles are stranded by flood waters in south Houston, Texas on May 26, 2015. / REUTERS

Insured U.S. catastrophe-related claims for May will “easily exceed” $1 billion, according to a report released Thursday by Aon P.L.C.'s Aon Benfield unit.

“Global Catastrophe Recap: May 2015” notes that this May was the wettest on record in Texas and Oklahoma. That meant major flooding across many cities and towns, following thunderstorms that affected a large portion of the country east of the Rocky Mountains, according to the report.

In addition to the flooding, severe weather prompted 412 preliminary reports of tornadoes in May by the Storm Prediction Center, said Aon Benfield, adding that would be the highest number of tornadoes in a month since April 2011, which generated 758 tornadoes.

“Overall insured losses will easily exceed $1 billion, though given low flood insurance penetration in parts of Oklahoma and Texas, the losses could have been even more robust,” according to the report.