The Insurance Information Institute announced on April 14 that severe convective storms, including tornadoes, hail, straight-line winds and thunderstorms, resulted in $51 billion in insured losses across the United States in 2025. This marks the third consecutive year that such losses have exceeded $50 billion, surpassing all other categories of natural disasters.
This trend is significant as it highlights a growing financial challenge for insurers and affected communities. The total economic damages from these storms reached over $68 billion last year, making 2025 the third costliest year on record for this type of peril.
The Triple-I report notes that while changing weather patterns contribute to rising losses, non-weather factors are primarily responsible for up to 90% of loss growth since 2000. These include population shifts into high-risk areas, legal system abuse and increased labor and construction costs, according to data cited from Gallagher Re. “Severe convective storms are no longer a ‘secondary’ regional or seasonal concern as recent years have proved they are a year-round, record-setting insured losses challenge,” said Sean Kevelighan, CEO of Triple-I. “The data shows addressing rising losses requires more than tracking the weather. We need coordinated action on legal system reform, smarter land use, resilient building standards, and innovative coverage solutions if we are to keep insurance accessible for the communities most at risk.”
In March 2025 alone there were a record-setting 300 tornadoes resulting in $8.4 billion in insured losses; June saw a rare EF5 tornado strike North Dakota—the first such event nationwide in twelve years. Hail damage accounted for as much as 80% of storm claims annually with roofs suffering between 70% and 90% of residential catastrophic loss totals. The ICECHIP study funded by the National Science Foundation sent over one hundred scientists across the Great Plains last summer to examine hailstone formation and roof material resilience.
Risk mitigation strategies are evolving alongside these challenges: every dollar invested can save up to thirty-three dollars in future disaster costs according to Triple-I’s Issues Brief. New tools such as IBHS FORTIFIED construction standards and parametric insurance—where payouts trigger automatically when pre-set thresholds are met—are helping insurers maintain accurate pricing while keeping coverage available.
The Insurance Information Institute supports stakeholders including consumers, media and policymakers by providing resources in English and Spanish through its official website. Since November 2020 it has been affiliated with The Institutes according to its official website. It represents more than fifty member companies—including regional, national and global carriers—and aims to provide data-driven insights on risk management according to its official website. The organization also ranks among leading online sources for insurance information via its digital platforms according to its official website and hosts events aimed at advancing understanding within the field according to its official website.
