Riots are still happening, which means “the losses could be significantly more.”
Since the death of George Floyd in late May, riots have plagued major cities across the country.
The vandalism, looting, and damage caused could cost insurance companies up to $2 billion.
Axios published this visual:
Property Claim Services (PCS) tracks insurance claims. Anything over $25 million receives a “catastrophe” label:
Between the lines: PCS, a unit of Verisk Analytics, won’t reveal an exact dollar figure from this year’s violence because it wants to sell that data to clients. But it says the insured losses far outstrip the prior record of $775 million from the 1992 Rodney King demonstrations.
- All previous catastrophes — as classified by the insurance industry — happened in a particular city. This was the first that happened not just in multiple cities, but in 20 states.
- “Not only is this the first, this is the first — kind of with a cymbal crash,” Tom Johansmeyer, head of PCS, tells Axios.
Loretta L. Worters of Triple-I told Axios the riots “are also different because they are so widespread.”
Plus, riots are ongoing, which means “the losses could be significantly more.”
Worters explained to The New York Post that losses “while severe, would not have [an] impact on the financial stability of the industry.” Hurricanes and the wildfires “could have a considerable impact on the insurance industry.”
Who knows when it will stop. Johansmeyer also noted that insurance companies have started to prepare for any unrest after the presidential election.DONATE
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