08/24/2020

2020 Natural Disasters: AmWINS Special Report

In true 2020 fashion, the week of August 24 is shaping up to be a historic weather event. Named Storms Laura and Marco, which are currently tropical storms, are both heading toward the Gulf. Our first thoughts and concerns are for the safety of people in the path of the storms. 

Tropical Storm Marco is impacting the Gulf Coast with 65+ mph wind conditions, storm surge and heavy rain which began Monday, August 24. 

Tropical Storm Laura is forecasted to strengthen and make landfall mid-week. There is an increasing risk of storm surge, heavy rain and wind to Gulf states – further intensifying the potential for damage and loss of life. 

 

Resources

We are ready to assist our employees and clients in the aftermath of these storms and offer the following links for readily available resources.

  • Carrier claims contacts
    • Should you have a claim to report as a result of the storms, the most efficient process is to report the claim directly to the carrier(s) in accordance with the reporting provisions of the policy. When submitting a claim, please include the insured's name and policy number.

To the extent possible, pending any cell or power outages, our employees in impacted areas will be working remotely and will respond to voicemails and emails.

 

Market Impact from 2020 Natural Disasters 

2020 has already been an unprecedented year for catastrophic events.

  • Wildfires have burned nearly 1.5 million acres across 13 states, with 1.1 million of that devastation in California.
  • Two weeks ago, powerful “derecho” storms hit hundreds of miles of the Midwest, with 100+ mph winds causing extensive damage.
    • The storms’ effects have been felt from South Dakota to Michigan.
    • It is estimated that 37.7 million acres of farmland across the Midwest – with 14 million in Iowa alone – were severely impacted.
  • Earlier this month, North Carolina was shaken by the largest earthquake in over a century.

Dowling and Partners estimate Q3 insured CAT losses will exceed $9 billion compared to the 10-year mean of $11.2 billion and median of $3 billion.

These natural disasters, combined with the ever-precarious economic environment, will continue to impact market conditions. We’ve already seen many carriers change their approach to assessing risk, such as reducing limits, increasing deductibles, restricting terms and raising rates. The market has continued to harden in many areas throughout 2020 and the culmination of this activity will put continued pressure on pricing. 

AmWINS continues to work closely with our carrier partners to stay abreast of their responses and any new or changing capacity. 


AmWINS Is On Your Team, Especially Now

Now more than ever it is critical to understand your clients' exposures and attend to their claims needs.  AmWINS offers our clients a range of services, from CAT modeling to claims advocacy, as well as exclusive Property capacity that continues to grow during the hard market.  Please reach out to your AmWINS broker or underwriter for individualized attention.

Keep an eye out for AmWINS’ Q3 State of the Market report that will provide additional insight into market changes across various lines and classes of business. There are many factors at work influencing the market, but the one constant is change. As always, we are committed to keeping our clients informed and armed with strategies for success. 

Contact Us

To learn more about how AmWINS can help you place coverage for your clients, reach out to your local AmWINS broker.  If you do not have a contact at AmWINS, please click here.

Legal Disclaimer. Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.

(c) 2017 AmWINS Group, Inc.

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