- Guidewire (GWRE, Financial) releases updated risk assessments for spring weather-related damages in the U.S.
- Tornadoes, hail, and flooding identified as major contributors to property damage and insurance losses.
- Data shows a significant increase in insured losses from severe convective storms, rising at 9.6% annually since 2000.
In an effort to aid insurers and homeowners, Guidewire (GWRE) has released updated spring weather and climate risk assessments. The report, based on data from HazardHub, highlights increased property vulnerabilities due to tornadoes, hail, lightning, and flooding in the continental United States.
The spring season, especially in the central and southeastern regions of the U.S., is characterized by a mix of warm, moist air and cold, dry systems. This volatile combination often leads to extreme weather events such as violent tornadoes and damaging hailstorms. According to HazardHub's data, these natural disasters contributed to significant property damage and insured losses nationwide.
The HazardHub Tornado Risk Score reveals that approximately 4.8 million housing units, or 3.4% of all homes, are situated in high or very high-risk areas for tornadoes. In 2024, the U.S. experienced 1,796 tornadoes, marking the second-most active year on record.
Severe Convective Storms (SCS) have been identified as a major source of damage, with Swiss Re reporting a record $65 billion in insured losses due to these storms in 2023. Hail is noted as the primary culprit behind these losses. HazardHub's Enhanced Hail Risk Score indicates that while the vast majority of U.S. housing units are exposed to hail risk, less than 1% are in high-risk zones.
Flooding is highlighted as the most costly natural disaster in the U.S., as per FEMA and the U.S. Senate Joint Economic Committee. Despite this, only 4% of homeowners in the country carry flood insurance, pointing to a significant gap in flood preparedness.
Guidewire emphasizes the importance of using HazardHub's property-specific risk scores for insurers to better assess exposure and for policyholders to take proactive measures to protect their homes. The spring season is increasingly associated with destructive weather events, driven by factors like suburban expansion and increased property exposure in high-risk areas.
Guidewire continues to provide robust data through platforms like Guidewire PolicyCenter, InsuranceNow, and API integrations, allowing consumers to access important risk information via freehomerisk.com.
