(KCC Meteorological Event Schematic for Winter Storm Fern. Source: KCC.)
Karen Clark & Company (KCC, Boston)has issued a flash estimate placing insured losses from Winter Storm Fern at $6.7 billion, based on results from its U.S. Winter Storm Model. The estimate includes privately insured damage to residential, commercial, and industrial properties from freeze, snow, ice, and wind.
The storm, which unfolded from January 23 to 27, delivered snow and ice to over 30 states and was marked by a severe Arctic air mass that pushed deep into the southern U.S., setting temperature records from Wisconsin to Texas. Record-setting or record-tying lows were reported in Madison, Wis. (-20°F), De Kalb, Ill. (-12°F), Rockport, Texas (0°F), and St. Paul, Minn. (-20°F).
Karen Clark, CEO, KCC.
According to KCC, freeze was the most damaging peril associated with the event, followed by snow and ice. Widespread power outages—especially in east Texas, northern Louisiana, northern Mississippi, and parts of Kentucky—exacerbated freeze-related losses by leaving properties without heat during the coldest conditions.
Commercial properties are expected to account for a disproportionate share of losses. In contrast to homes, many commercial buildings are not heated continuously, leaving plumbing systems vulnerable during off-hours. Burst pipes from prolonged sub-freezing temperatures caused extensive interior damage, particularly in areas unaccustomed to such cold.
Southern and southeastern states are expected to see the most significant impacts due to the severity of the cold relative to historical norms and the limited weatherproofing of structures in those regions. Texas and Tennessee are identified as the states with the highest insured losses.
Fern’s scope and loss profile highlight the increasing exposure of traditionally lower-risk regions to extreme winter weather events. The storm’s footprint, broad regional exposure, and commercial property impacts are likely to place further strain on insurers managing freeze risk accumulation in nontraditional markets.
KCC’s estimate does not include losses covered by the National Flood Insurance Program or uninsured exposures.