Also in this playlist...
This transcript is automatically generated
-- thanks very much Nicole.
Insured damages from this week's tornadoes and severe storms could reach five billion dollars to disaster modeling firm -- -- just doubled those estimates and Tom Larson.
Senior vice president there joins me now.
For being with us.
And tell us now.
You have one line in the -- some reading -- quite understand you said that.
This storm there's about it because -- the five billion dollars.
That there's only 5% probability per year of that limit being -- -- modestly rare and then you said that threshold of five -- has been exceeded.
Twice in the last three years which makes this even more rare can explain that.
-- -- -- -- Tornado -- it occurs or to random process the way we look in the US there about 15100 tornadoes per year some years -- more active summer left so.
But they don't always hit urban areas.
The condition for a larger insured losses that we have a tornado large tornado in an insured area.
That Joplin tornadoes.
Of 2011 -- horribly active year.
And we saw very large events.
That -- push past that five billion dollar threshold.
This event from the from this 1 am overlooking effort insured losses are looking at the -- Abbas is from all the tornado strikes from -- weather system although few days.
It could hit five billion dollars that -- yes they are rare it's exceptional to have two events in a row.
As a model -- were always looking for patterns is -- something to this should at least get some insights as you know what are what's gonna happen tomorrow.
And while this is rare there are no really -- strong insights to make us think that we're going to see a heightened girl a lot more events.
You know we've been here you we've been hearing reports lately that we can expect more storms this year but you have a second factor where.
Even if per pound for pound same exact strength -- storm will be causing more.
Actual financial damage why is that.
Absolutely because they're more of us and we're bigger and nicer homes.
It's really important it's sort of like throwing a dart darts at a dart -- there are more targets on the ground as -- as a population we expand in urbanized more areas.
What what used to be farmland and a tornado touching down in -- knock down a lot of week.
No it goes through a subdivision and more townhouses.
-- plane based on demographics we expect a higher frequency of losses because they're more houses.
In higher severity because the houses are more expensive.
Cars and young appliances that we have -- more expensive.
-- last quick question Tom you know when you assess damage you can't pick out one anger acre and then you multiply it by the whole area you actually look at the entire area.
And is it easier assess damage when unfortunately an entire building is -- -- and destroyed instead of only partly damaged.
Well we'll answer that backwards.
It is easier to estimate larger us damage it's easier estimates complete damage it's much harder we look at.
Hurricane sandy or superstar sandy from last fall where it was a lot of -- the traditional damage.
It's much easier for the larger damage what we do as we look at -- inventories and populations the demographics and look at you know what are the populations involved.
We can get -- Census information and square footage of buildings all right well good luck with that -- -- thank you very much for being with us today Tom -- Well thank you Dennis -- --
Filter by section