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May another costly month for insurers, says Aon

Prolific severe weather and flooding in the US has prompted another monthly multi-billion-dollar insurance bill, the latest Global Catastrophe Recap report from Aon says.

A significant proportion of the US losses, estimated to be a minimum of $US4 billion ($5.74 billion), was covered by insurance, “resulting in another costly month” for insurers.

High winds on May 4-5 in Kansas, Arkansas, Missouri, Tennessee and South Carolina, as well as  a major hailstorm in the Texas city of San Antonioon May 27, are expected to result in close to $US2 billion ($2.87 billion) in claims costs.

That contrasts with the mostly uninsured $US15 billion ($21.5 billion) economic loss and devastation of Cyclone Amphan, which made landfall in India on May 20.

Amphan swept across India, Bangladesh, and Sri Lanka, killing at least 133 people, injuring more than 1200 and damaging millions of homes and vast areas of agriculture and infrastructure.

In Australia, the impact on property and motor insurance is still being assessed after strong winds and heavy rains swept across WA on May 25, Aon says. Remnants of Tropical Cyclone Mangga interacted with a cold front, cutting power to nearly 62,000 homes.

In China, nine separate instances of severe weather struck in May as deadly storms affected parts of 26 provinces, causing losses of CNY7.58 billion ($1.5 billion).

In Europe, May also brought notable hail, wind and flood-related effects in Spain, France, Germany, the Czech Republic and Poland on May 9-11. Aggregated economic losses were expected to be in the tens of millions of euros.

Typhoon Vongfong became the first named storm of the 2020 Pacific Typhoon Season and impacted the Philippines on May 14-15, damaging nearly 50,000 homes.

Seasonal flooding continued in East Africa while deadly Tropical Storm Amanda affected parts of Central America and Tropical Storm Cristobal hit the Gulf of Mexico in early June.