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What’s happening: In the U.S., one person was killed and at least 18 others injured after a tornado struck a small central town in Mississippi, which left around 49,000 people without power. Further south, the second named tropical storm of the year, Bret, is expected to approach the Lesser Antilles islands with warnings of flooding, strong winds and dangerous waves.

Aon offers insights on how organizations can navigate the volatility that severe weather events – including tornadoes, hurricanes and windstorms - can bring:

• The threat of tornadoes is rising as the weather conditions that create them are becoming more frequent and widespread. According to John Dickson, president of Aon Edge: “If we continue on the trend that we’re going, that means that these economic losses are going to become in the hundreds of billions of dollars in a calendar quarter. We need to make sure we have the infrastructure, we have a capital mechanism, that we have a connected community mechanism to be able to respond to these events.” Check out additional insights from Dickson and Aon’s President Eric Andersen in CNBC.
• The 2023 Atlantic hurricane season began June 1 and runs through November 30. According to Aon’s 2023 Weather, Climate and Catastrophe Insight, Hurricane Ian in the U.S. was the second costliest natural disaster in 2022 for insurers, costing $50 to $55 billion in insured losses. Read more in Yale Climate Connections and find out what we have learned from the impacts of past hurricanes to help organizations navigate the increasing volatility from natural catastrophes in the future here.
• Earlier this year, Aon updated its Impact Forecasting Europe Windstorm and Severe Convective Storm (SCS) catastrophe models to incorporate emissions scenarios that inform current and future projections of climate and storm activity across the continent. Adam Podlaha, Aon’s head of Impact Forecasting, said: “By drawing on client feedback and client needs, lessons learned from historical events, and the collaboration between our wind experts and flood science specialists, JBA Risk Management, this model update delivers a complete view of risk that enables users to make more informed and better decisions to manage the windstorm peril across Europe, including the UK.” Learn more in Reinsurance News.