The Insurance Information Institute (Triple-I) has published a new members-only Issues Brief, Severe Convective Storms: State of the Risk, finding that tornadoes, hail, straight-line winds and severe thunderstorms caused $51 billion in U.S. insured losses in 2025, marking the third straight year such losses have exceeded $50 billion, more than any other category of natural disasters.

Total economic damages from severe convective storms reached over $68 billion last year, ranking 2025 as the third costliest year on record for the peril.

Non-Weather Factors Driving Losses

Triple-I’s Issues Brief underscored while evolving weather patterns contribute to rising losses, non-weather factors are the dominant driver of insured losses. Demographic shifts into high-risk regions, legal system abuse, and escalating labor and construction costs collectively account for up to 90% of loss growth since 2000, 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 loss challenge,” said Sean Kevelighan, CEO, 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.”

Record Level of Tornadoes

Among 2025’s notable events: a record 300 tornadoes in March alone generated $8.4 billion in insured losses, and a rare EF5 tornado struck North Dakota in June, ending a 12-year absence of the most violent tornado classification in the United States.

Hail Damage Generates Most Claims

Hail alone accounts for as much as 80% of severe convective storm claims in any given year, with roofs bearing an estimated 70% to 90% of total insured residential catastrophic losses. Triple-I’s report highlighted a landmark $11 million National Science Foundation-funded hail study, ICECHIP, which dispatched more than 100 scientists across the Great Plains in summer 2025 to analyze hailstone formation and the resilience of various roofing materials.

Investing in Risk Mitigation

The Issues Brief also examines evolving risk mitigation strategies, noting that every $1 invested in hazard mitigation can save up to $33 in future disaster costs. It highlights the growing role of IBHS FORTIFIED™ construction standards, aerial imagery, artificial intelligence and parametric insurance, which can trigger rapid payouts when pre-agreed loss thresholds are met, as tools that can help insurers price risk accurately while keeping coverage available and affordable.

About the Insurance Information Institute

Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers – serving regional, national and global markets.

About The Institutes

The Institutes® are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes’ 20 affiliated business units and backed by more than 115 years of experience as a trusted knowledge partner, we empower people and organizations to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world. Learn more at Global.TheInstitutes.org.

The Institutes is a registered trademark of The Institutes. All rights reserved.

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“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 loss challenge."