February 2021 winter storms in the US: high cost for insurers and reinsurers

The series of winter storms that hit the United States in February 2021 have caused substantial economic losses, according to a study conducted by the broker Aon.

The polar vortex, which struck the U.S.-Mexico border between 12 and 20 February 2021, resulted in record breaking cold waves. At the same time, a series of low-pressure systems triggered cycles of snow, freezing rain and severe thunderstorms.

The storms resulted in economic damage and business losses exceeding 10 billion USD. Such a toll would make February the most expensive month for American insurers and reinsurers.

On 25 and 26 February, severe thunderstorms and hail episodes have hit North Texas. The economic damages are expected to exceed 100 million USD, a good part of which will be covered by insurance.

The 25 February to 1 March floods in the Ohio and Tennessee valleys have caused losses amounting to nearly 100 million USD.