’Record Claims Reporting’ Follows Texas Deep Freeze
The first estimates of losses for the Texas deep freeze event, which resulted in burst pipes, widespread blackouts, and water shortages, have arrived â€“ and they’re not pretty.
According to Enki Research disaster modeler Chuck Watson, the severe weather event could cost as much as $90 billion in losses, with $35 billion of that total stemming from physical damages and $20 billion of that covered by insurance.
Power outages in particular have aggravated the impacts of the event in four of the key population centers (San Antonio, Houston and Dallas, and to a lesser extent, Austin) for one claims giant.
‘We’ve got what are proving to be extremely severe claims. Freezing pipes are now warming up and we’ve got water losses and a much bigger event than we would have had, had power been maintained,’ said Ken Tolson, president of network solutions for Crawford & Company.
‘We’re seeing record claim level reporting in all of those markets, and every client of ours that we have existing catastrophe surge contracts with is being affected. It is a major event.’