After severe winter storms hit the southern and eastern United States in late January, two major U.S. insurance companies reported more than 24,500 claims, signaling a costly start to the year for personal insurance carriers.
State Farm confirmed that between January 23 and 26, following the impact of Winter Storm Fern, policyholders filed over 19,500 home and auto claims. The main causes of damage included snow and ice accumulation, strong winds, water damage, and frozen pipes, indicating widespread effects on both property and vehicles.
USAA separately reported more than 5,000 claims linked to Winter Storm Fern and a nor’easter that struck about a week later. The back-to-back storms further increased losses for insurers and policyholders.
The second storm brought heavy snowfall to the Carolinas, Virginia, and Tennessee, while also affecting parts of Atlantic Canada. The Fern system had already extended into some areas of Canada earlier, causing multiple days of disruption.
According to Karen Clark & Company, more than 30 U.S. states were affected by Fern, with total insured losses estimated at approximately $6.7 billion. Verisk’s Catastrophe and Risk Modeling division estimated that total losses from property and auto claims could reach up to $4 billion, highlighting the uncertainty around the final loss figures. Aon reported that insured losses have already surpassed $1 billion.
Because these storms occurred early in the year, insurers and reinsurers need to assess how much of their 2026 catastrophe budgets may already be committed. This financial strain comes ahead of the peak period of severe winter storms and the Atlantic hurricane season.
Due to their dominant market positions, large national insurance companies are expected to absorb the majority of the losses.
Smaller regional or single-state carriers may face concentrated financial pressure in heavily impacted areas, especially when repeated winter storms erode their reserves and aggregate protections without triggering a large, single-event reinsurance recovery.
