State Farm has received more than 1,200 claims related to winter storm Fern, which swept from the Southern Rockies to the East Coast over the weekend, with industry analysts warning insured losses could reach well into the billions of dollars.
Spokesperson Roszell Gadson said on January 26 that claims continue to come in steadily, noting that ongoing power outages in affected areas are expected to delay some reporting.
"Our priority is taking care of our customers' needs across multiple states," Gadson said.
As of that afternoon, poweroutage.com recorded 681,146 outages from Texas to Virginia. Tennessee accounted for the highest number at 224,618.
Gadson said damage reports include downed trees and power lines affecting structures and vehicles. "We are also seeing some claims associated with frozen pipes," he said.
Tennessee accounted for the majority of claims, with more than 750 filed by home and automobile policyholders. State Farm, the largest homeowners and auto insurer in the US, has activated catastrophe response teams.
Andrew Siffert, senior vice president and senior meteorologist at BMS Group, said property damage from ice accretion, which caused widespread tree limb fall, will be a significant driver of losses.
Howden Re noted the storm brought cold and ice over much of the same population affected by winter storm Elliott in December 2022, which caused more than US$7 billion in losses.
Balz Grollimund, head of cat perils and chief underwriting officer of property/casualty reinsurance at Swiss Re, said in an online post that prolonged cold temperatures increase the risk of frozen and burst pipes while placing stress on power, water, and transportation infrastructure.
Grollimund said extreme cold, rather than snowfall or wind alone, has driven the largest winter storm losses. Prolonged freezing temperatures "materially increase the likelihood of widespread pipe failures, water damage and business interruption, particularly when combined with power outages or fuel-supply constraints," he said.
Extreme cold is expected to persist across the Central and East regions through the last weekend of January.
Grollimund noted that within catastrophe risk frameworks, winter storms are classified as primary perils alongside hurricanes and earthquakes.
Following the storm, forecasters warned of prolonged cold temperatures across large areas, raising the prospect of additional claims as affected homeowners and businesses assess damage in the coming days.
