Winter Storm Fern Could Become Third Costliest U.S. Winter Storm with $4B in Insured Losses

Event summary

  • Verisk estimates insured losses from Winter Storm Fern could reach $4 billion, driven by freeze impacts, wind, and snow.
  • The storm affected 14 states from Texas to Massachusetts, with each potentially exceeding $50 million in insured losses.
  • Winter Storm Fern was unusually intense due to the collision of warm subtropical air with extremely cold Arctic air.
  • Verisk's updated U.S. Winter Storm Model, set for release in June 2026, includes enhancements for freezing rain and power outage impacts.
  • If estimates hold, Fern would be the third costliest U.S. winter storm on record, behind Winter Storm Elliott (2022) and Winter Storm Uri (2021).

The big picture

Verisk's estimate underscores the growing financial toll of extreme weather events on the insurance industry. The storm's intensity and widespread impact highlight the need for advanced modeling tools to accurately assess risks and losses. This event could accelerate the adoption of Verisk's updated winter storm model, reinforcing its position as a critical partner for insurers navigating climate-related risks.

What we're watching

Model Accuracy
How Verisk's updated U.S. Winter Storm Model will perform in capturing the full extent of Fern's damages.
Industry Impact
Whether the $4 billion estimate will trigger reinsurance market adjustments or rate hikes.
Climate Trends
The pace at which extreme winter storms like Fern become more frequent due to climate change.

Related topics

Insurance