Risk-modeling agency Risk Management Solutions (RMS) has estimated that the late April tornadoes outbreak that hit Southern US will cost the insurance industry between $3.5bn and $6bn.
Alabama state accounts for nearly 70% of the total insured loss estimation, as the worst affected state that experienced the majority of the strong to violent tornadoes that occurred between 25-28 April 2011.
While 40% of the total insured loss is caused by a single tornado that swept by Jefferson, Greene and Tuscaloosa counties on April 27.
The RMS estimates includes losses from personal, commercial, automobile and industrial lines of business.
The estimates represent insured losses from affected states including Alabama, Georgia, and Tennessee.
RMS product manager Matthew Neilson said that this tornado outbreak is set to become one of, if not the, costliest severe convective storm event in US history.
Another risk modeler AIR Worlwide has estimated the same damage between $3.7bn to $5.5bn.