Winter Storms Drive $6B in U.S. Insured Losses: Coverage Gaps Exposed — Insurance Information Institute (Triple-I)

Event summary

Winter storms caused nearly $6B in insured losses nationwide in 2022, the second-highest year on record for winter storm insured losses in the last 10 years.
The third costliest winter event since 1950 occurred in December 2022, amounting to $3.5B in insured losses.
Homeowners, drivers, and businesses face varying coverage options for property damage, financial losses, and disruptions caused by snow, ice, and freezing temperatures.
About 80% of insured drivers include comprehensive coverage to protect against weather-related non-collision damage.

The big picture

Winter storms are becoming more frequent and severe, driving up insured losses and exposing gaps in coverage. The Insurance Information Institute highlights the need for better understanding of policy details and proactive risk management to mitigate financial stress during these events. The industry must adapt to these changing weather patterns to ensure adequate protection for policyholders.

What we're watching

Claim Volume: How the frequency and severity of winter storm claims will impact insurers' profitability and risk assessment models.
Coverage Adequacy: Whether current insurance policies adequately cover the increasing frequency and intensity of winter storms.
Mitigation Measures: The pace at which homeowners, drivers, and businesses adopt mitigation measures to reduce future storm impacts.