Hurricanes drive Q4 surge in cat claims: Verisk

Late-season hurricanes helped drive a 113% surge in catastrophe claims and a 36% increase in total property claims in the fourth quarter of 2024, according to a report issued Thursday by Verisk Analytics Inc.

New approaches to risk assessment and resource planning are needed, particularly in the Southeast where costs increased at six times the national rate following hurricane activity, Verisk said.

Hurricane-related claims comprised 8.7% of total claims volume in the U.S., a 1,169% increase from the fourth quarter of 2023, Verisk said. Flood claims increased 221%, while wind claims were up 195%, reflecting the quarter’s severe weather patterns.

Florida, Georgia and South Carolina saw increased claims due to hurricane activity, while unexpected surges in claims in the Great Plains and Pacific Northwest were primarily due to water, hail and wind events.

Conversely, the Northeast saw a marked decrease in wind-related claims compared with the fourth quarter of 2023, Verisk said.

Reconstruction costs continued their upward trend, with commercial properties seeing a 5.5% increase from January 2024 to January of this year; residential saw a 4.5% increase. Rhode Island led all states with a 10.1% increase in commercial reconstruction costs.

Labor costs outpaced material costs — a reversal from the third quarter — suggesting potential challenges in skilled labor availability, Verisk said.

Hurricane Milton has generated nearly 187,000 claims, totaling $2.68 billion in replacement cost value, with 8% outstanding as of year-end 2024, Verisk said. The average reconstruction cost value stands at $19,100 per claim.