Flooding in Central Europe, China and U.S. Midwest Dominate May Cat Losses

Heavy storms coupled with driving rain were responsible for billions in global catastrophe losses last month, according to the monthly Cat Recap report from Aon Benfield.

In the U.S., total economic losses from both the flood and tornado events in the Tennessee Valley were forecasted to exceed $3 billion. The combined insured losses may reach $1.5 billion.

Insurers have registered more than 70,000 flood and severe weather claims to date for the U.S. storms, according to the report.

In Central Europe heavy rainfall affected Poland, the Czech Republic, Slovakia, Hungary and Serbia between May 12th and May 28th.

Southern Poland was worst hit, with total economic losses estimated to be greater than $3 billion. In the Czech Republic insured losses are estimated to be more than $100 million and economic losses greater than $200 million.

In southern China, consecutive weeks of heavy rain caused an economic loss of $2.23 billion and over $20 million in vehicle insurance payouts, the report says.

The biggest unknown losses for the month can be attributed to the Deepwater Horizon explosion and resulting spill.

“Initial estimates suggested that the local fishing industry could suffer a loss of $2.5 billion, while the loss to tourism could reach $3 billion,” according to the report.

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