U.S. property insurers will sustain “manageable” losses following recent winter storms, says new analysis — the latest indicator that the insurance industry is adjusting to increasingly damaging extreme weather.
Ratings agency A.M. Best commented Thursday on Winter Storm Fern in January and Hernando this week, which caused extensive power outages, travel shutdowns and property damage to wide swaths of the U.S.
Total insured losses from Fern, which blanketed the U.S. with snow from Jan. 23 to Jan. 27, are projected at $4 billion to $7 billion while early estimates for Hernando are “anticipated to be significant,” A.M. Best said.
Insurers are well-positioned to absorb the losses after years of revamping their business strategies as natural disasters intensify in the U.S. and worldwide, A.M. Best said.
