Gallagher Re: US severe weather outbreak could cost insurers up to $3 billion

By Mia MacGregor

March 21 - (The Insurer) – Private insurance industry losses from the March 13 to 16 severe weather outbreak in the U.S. are estimated at between $1 billion and $3 billion, according to Gallagher Re, with most wind and hail-related damage expected to be covered by carriers.

The Midwest, Southeast, and East Coast had the most significant insured losses across homes, commercial properties, automobiles, and agriculture. Wildfires in Oklahoma and Kansas, fueled by high non-thunderstorm winds, added to the overall damage.

Gallagher noted this marks the first billion-dollar U.S. severe convective storm (SCS) event of 2025.

The multi-day weather event brought severe storms, wildfires, damaging winds, heavy rain, and winter conditions across multiple states, Gallagher stated.

At least 106 tornadoes were confirmed, while hail over 2 inches (5 cm) affected 28,000 people in Alabama, Kentucky, Louisiana, Missouri, Mississippi, and Texas.

Straight-line winds over 80 mph (130 kph) caused extensive property damage across the Plains, Midwest, Southeast, and Northeast. Hundreds of wildfires in Oklahoma and Kansas, fueled by 70 mph (110 kph) winds, damaged or destroyed 400 homes in Oklahoma.

At least 42 fatalities were reported during the outbreak, including around two dozen linked to tornadoes, Gallagher stated. The storms left hundreds of thousands without power, and widespread damage was recorded to homes, businesses, and vehicles.

“While large hail annually accounts for 50 to 80% of insured SCS losses in the U.S., recent events act as a reminder that tornadoes and straight-line winds continue to drive regionally large losses, particularly when they impact urbanized areas,” the company stated.