Two major US insurers have reported more than 24,500 claims linked to late January winter storms that swept across much of the US and into Canada, adding to what is already shaping up as another costly period for personal lines carriers.
State Farm said policyholders filed more than 19,500 home and automobile claims after the January 23 to 26 winter storm, also known as Fern. The main causes of loss included snow and ice, water, wind and frozen pipes, pointing to a broad range of property and auto impacts. USAA, according to BestWire, separately reported more than 5,000 claims tied to Winter Storm Fern and a nor’easter that struck roughly a week later, illustrating how back‑to‑back events can compound losses for insurers and policyholders.
The second storm brought heavy snow to the Carolinas, Virginia and Tennessee and and also affected Atlantic Canada. The earlier Fern system had already extended into parts of Canada, creating a wide geographic footprint and multiple days of disruption.
Multi‑billion‑dollar losses early in the year
More than 30 US states were impacted by Fern, according to Karen Clark & Company (KCC), which estimated total insured losses at around $6.7 billion. Verisk’s catastrophe and risk solutions group separately indicated that insured property and automobile losses from the events could reach as much as $4 billion, according to BestWire, underscoring both the scale of the impact on personal lines and the uncertainty still surrounding ultimate loss totals. Aon said the storms have already generated at least $1 billion in insured losses.
Because the events occurred so early in the calendar year, Fern and the subsequent nor’easter are likely to be closely monitored by carriers and reinsurers as they assess how much of their 2026 catastrophe budgets and retentions may already be committed ahead of the main US convective storm and Atlantic hurricane seasons. The activity follows several years in which so‑called “secondary” perils – including flooding, severe thunderstorms and wildfires – have driven substantial global losses and now rival traditional “peak” perils in annual catastrophe tallies.
Underwriting and pricing pressure
For homeowners' underwriters, Fern’s footprint, including traditionally milder states hit by ice, snow and hard freezes, is expected to prompt closer scrutiny of freeze and water‑damage exposure, especially in older housing stock and properties with unprotected plumbing. Carriers may revisit assumptions around regional hazard patterns as recurring clusters of winter storms test models built on historic temperature and snowfall norms.
On the rating side, the combination of burst‑pipe claims, ice‑related roof damage and winter‑weather auto collisions is likely to reinforce pressure for continued homeowners' and auto rate adjustments in affected states, even as parts of the US market have seen some softening in other property and casualty lines.
Reinsurance and regional carrier exposure
Given their market shares, the largest personal lines writers are expected to absorb a substantial share of Fern‑related claims. With State Farm leading both homeowners' and private passenger auto, and USAA ranking among the top five in each line, their early claim counts offer an indication of the volume of losses moving through the system.
Regional and single‑state carriers in the hardest‑hit areas may face a more concentrated earnings impact, particularly where repeated winter events erode retentions and aggregate protections rather than triggering large, single‑event reinsurance recoveries.
Operationally, Fern’s mix of property and auto losses is likely to test carriers’ surge capacity, digital claims capabilities and repair networks. For brokers and agents, the storms provide a prompt to revisit winter‑weather preparedness and coverage adequacy with clients, including mitigation steps, deductible levels and the potential role of telematics or usage‑based programs for drivers exposed to hazardous winter conditions.
