Hail Damage by the Numbers
Damage from convective storms continues to capture the attention of both the public and insurers because of the increase in the number of extreme weather events coupled with the shift in geographic distribution of losses. Convective storms produce strong winds and battering hail that can also generate tornadoes and heavy rains with localized flooding. According to the National Oceanic and Atmospheric Administration, hail causes about $1 billion in damage to crops and property each year; in 2013, Texas had the largest number of severe hail events, followed by Kansas, Nebraska, Oklahoma and South Dakota1. While these areas are commonly associated with hail damage, it is important to note that any location that experiences convective storms will eventually be exposed to hail damage.
Property-Specific Weather Analytics & Verification
Today, weather verification technologies and parcel-level data sets enable the insurance industry to better assess potential storm damage, identify impacted policyholders and develop action plans—even before the first claims come in. Insurance carriers who implement these action plans experience faster claims handling, less resource requirements and improved customer satisfaction throughout the claims process. This allows policyholders to return to their uninterrupted lives more swiftly and also reduces the desire to switch insurance providers. In a Dallas News article, “New Technology is Changing How Insurers Investigate Hail Claims,” Robb Waldner, a claims manager for Amica Mutual Insurance Company, said the following about hail maps: “We can put a game plan together even before the claims come in to predict where a hailstorm may have caused damage to Amica policyholders. Our adjusters can see twice as many claims as before.”