MADISON, Wis. (5/28/13)--Tornados and storm systems that ripped through the Midwest last week are expected to cause between $2 billion and $5 billion in insured property losses, said catastrophe modeler Eqecat.
A tornado that devastated Moore, Okla., destroying roughly 13,000 structures, caused most of the expected losses, Eqecat said (PropertyCasualty360.com May 24).
So far, about 1,990 claims just in Moore have been received by Farmers Insurance Group, Mark Toohey, a Farmers spokesman, told the publication. That number likely will rise, and claims have been split 65% in property claims and 35% in auto claims, Toohey added.
Farmers is the second-largest insurer for catastrophe risk--based on market share--in Oklahoma, according to SNL Financial data. SNL defines catastrophe risk as allied lines (excluding crop and flood damage), commercial auto physical damage, commercial multiple peril (non-liability), farmowners multiple peril, fire homeowner multiple peril, inland marine and private passenger auto physical damage.
Tornado activity thus far in 2013 has been below the long-term average, Eqecat said. As of May 23, there have been 342 tornado touchdowns--about half the average during the past eight years and less than one-third the pace of 2008 and 2011, which were record-activity years, Eqecat said.