The January 2026 winter storm, dubbed “Fern” by the Weather Channel, that affected a large swath of the United States set multiple records for winter weather disasters and is expected to generate hundreds of millions of dollars in insured losses, according to independent re/insurance broker BMS.
Winter storm ferns have affected more than 180 million people in the United States and Canada, with nearly a million without power.
As of January 27, snow covered 56% of the continental United States. From New Mexico to New England, 26 states received up to 6 inches of snow, and 13 states received at least 1 foot of snow. In many areas, this marked the largest snowstorm in a decade or more. Freezing rain and ice accumulation are also significant hazards associated with the storm.
Andrew Siffert, senior vice president/senior meteorologist at BMS, noted that determining the overall impact to the insurance industry remains challenging because winter storms are one of the industry’s most complex hazards and one of the most difficult to model catastrophe risk. Damage calculations are often complex due to their multi-hazard nature and the way these hazards interact. Hazards typically include peak wind gusts, ice loads, snow loads and freezing temperatures.
Winter storm fern appears to combine all of these risk factors, making it potentially costly, BMS said.
Siffert emphasized that winter storm losses typically account for about 6 percent of the average annual losses simulated overall by catastrophe risk models. Since 2023, the insurance industry has experienced an average of nine winter storm events per year, with average losses of approximately $375 million. During the same period, approximately 24% of events resulted in insured losses exceeding $500 million.
Higher insured losses are often associated with storms that affect more urban-populated areas and trigger cascading losses due to widespread power outages.
“Fortunately, weather memories are short-lived, and memories of 2021 or 2022 can help inform loss prevention strategies for extreme winter weather,” Siffert said. “This winter storm was well publicized in advance, giving policyholders across business lines ample time to prepare and take precautions to limit winter weather-related losses. BMS Group is an IBHS member and has extensive resources in building winter weather resilience.”
“Another silver lining for insured losses from this event is that some of the most populous areas were not affected by severe ice damage as previously feared. Areas such as Dallas and Atlanta appeared to have escaped the worst effects of the ice storm. However, with many areas without power, the rural nature of the impact shows how widespread and impressive the number of outages can be. A severe ice storm affecting rural areas would still increase insurance industry losses.”
Given the widespread ice storm impacts caused by this storm, BMS expects insured losses from Winter Storm Fern to reach hundreds of millions of dollars.
Sievert reiterated that damage from winter storms can be complex, compounded by the ongoing cold that just occurred.
“The continued cold, coupled with widespread power outages, will extend the claim period for this winter storm and complicate loss dates,” Sievert explained. “The continued cold will also cause ice dams to form in many areas that have seen heavy snowfall over the past few days, again delaying claims and complicating loss dates, which will be further impacted by next week’s weather forecast.”
