A new report from Gallagher Re indicates that the severe convective storm (SCS) that broke out on March 15-16 is expected to be the second SCS event in the United States this year to cause more than $1 billion in industry losses within a week, following the impact of hail and tornadoes in the March 10-12 outbreak.
The company said the recent South China Sea outbreak affected the central and eastern United States and was accompanied by historic late-season snowfall in the Northern Plains and Midwest.
As previously mentioned, Gallagher Re expects insured losses from the event to be at least around $1 billion, with the potential to rise further, while the overall direct economic cost will increase by at least 25% when uninsured or underinsured assets and other losses are included.
The reinsurance broker’s report added: “After a highly controlled and quiet start to the year’s U.S. SCS activity and subsequent losses, it triggered considerable storm origins as the calendar moved into March. Now, significant storm outbreaks occurred on March 4, March 5-7 and March 10-12.”
Gallagher Re explained that this March’s high level of activity is not unique, as this month has been marked by widespread disruptive activity since 2023.
The company’s report goes on to note that last year’s tornado outbreak in mid-March became the costliest event of the season, with insured losses reaching $8.5 billion in today’s dollars. March 2025 also set a record for the most tornadoes in March, with at least 239.
Gallagher Re continued: “March is considered the historical start of the “peak” of the SCS season in the United States. The peak months for overall SCS activity and observed losses are March, April, May, and June.
“Since 2010, these four months have accounted for at least 72% ($390 billion) of U.S. SCS insured losses. On an annualized basis, the U.S. has now seen three consecutive years of SCS-related insured losses of at least $50 billion.”
In related news, Swiss Re recently disclosed that although global insured losses will reach US$107 billion in 2025, which is lower than the long-term natural disaster trend, secondary disasters such as wildfires, South China Sea disasters and floods account for a record high of 92% of total losses.
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