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Verisk data shows US severe thunderstorm insured losses rising sharply
Average annual severe thunderstorm insured losses climbed from about $4 billion in 1998 to over $40 billion in 2021-2025, with Texas driving most Q1 2025 CAT claims.
Verisk data compiled by Property Claim Services (PCS), a unit of Verisk, indicates US severe thunderstorm insured losses have surged over the past two decades as exposure and claim costs rise. In commentary to Artemis ahead of the launch of its Q2 2026 catastrophe bond and ILS market report, PCS Head of Commercial Strategy Harry White said average annual severe thunderstorm insured losses increased from approximately $4 billion in 1998-2005 to over $40 billion in 2021-2025.
White pointed to two main drivers behind the trend, including higher insured exposure across severe thunderstorm-exposed states and a sustained increase in the average cost of claims. PCS loss data showed annual claims nationally rose from 1.3 million (1998-2005) to 3.5 million (2021-2025), with personal lines increasing from 900,000 to 2.2 million and auto from 296,000 to 1.1 million.
The data also highlights growth in cumulative losses in several states, with Missouri, Illinois, Colorado, and Minnesota each topping $9 billion over the period. The analysis said exposure growth has been tied to residential and auto coverage expanding into previously undeveloped land.
Texas is singled out as the most pronounced example of the national shift. According to the Verisk data cited by Artemis, Texas accounted for 95% of all Q1 2025 CAT claims nationally, with events affecting the state rising from six per year in 1998-2005 to 32 in 2021-2025, and Texas share of total insured losses increasing from 13% to 23%. White also attributed part of the pattern to population growth since 2000, which has expanded city footprints into new areas around the Dallas-Fort Worth and Houston suburbs.