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Midwest severe storms could drive around $5B in U.S. insured losses

Aon estimates the week’s wind, hail, and tornado damage, including an EF3 tornado in Wisconsin, could push total economic and insured losses into the low-to-mid single-digit billions and rank among the costliest events.

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Aon says a substantial severe weather outbreak in the U.S. Midwest, hitting July 27 and spreading into the eastern U.S. on July 28, could become a top-10 severe weather insurance industry loss event. The broker estimates losses could total around $5 billion or more for the market.

Aon’s reporting attributes the potential losses to severe convective storms producing high winds, large hail, and some tornadoes across affected regions. It points to widely observed 3 inch hail and supercell storms in Wisconsin and Illinois that brought intense, widespread winds, hail, heavy rain, and tornado activity.

One of the most notable impacts was an EF3 tornado that directly hit parts of Appleton and Menasha in Wisconsin’s Fox Cities area. Aon said damage surveys by the National Weather Service determined peak winds of 140 mph, and that homes and businesses in the tornado’s path were destroyed.

Aon also highlighted that storms moved toward the Chicago metro with hurricane-force wind gusts and hail larger than 2 inches, along with localized flooding. For the overall event, the broker said total economic and insured losses are likely to reach the low-to-mid single-digit billions, adding that the outbreak could rank near or among the top 10 costliest severe weather events in U.S. history.

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