Winter 2014: Costing Insurers 1.5 Billion

Harsh weather in many parts of the United States this winter has hit the nation hard. Schools, business and roads closed, causing business losses and property damage. Nowhere has the impact been felt more keenly than in the insurance industry.

According to the Insurance Information Institute (III), insurers have paid more than 1.5 billion in claims so far this winter – just from incidents occurring between the first of the year and February 21st. Homeowners suffered damage from ice, snow and sub-zero temperatures causing frozen pipes, roof and other property damage, including downed power lines and tree limbs. Icy roads and poor visibility increased the number of auto accident claims.

Businesses have also been impacted by closings and supply chain interruptions that caused a substantial loss of revenue for some. The severity of this year’s impact is in part because of the location of the storms, many of them occurring in the south where they were unprepared for 2014’s record breaking low temps, ice and snow.

Fortunately, the insurance industry entered the season in top financial form with plenty of available capital to address claims.

According to Dr. Robert Hartwig, president of the III, despite the extreme winter weather this year, insurance damages for weather such as snow, sleet, freezing rain, extreme cold and ice are still substantially lower than that of other natural disasters:

Hurricanes and tropical storms – 40.0%

Tornados – 36.0%

Severe winter weather – 7.1%

Homeowners and businesses are wise to be prepared for catastrophic weather events. You can prepare for unpredictable business demands with Insurance Relief™.  We specialize in providing hard-to-find candidates to the insurance industry. We create strategies to keep your costs down and find the best people.

Contact the insurance recruiters at Insurance Relief to learn more.