State Farm Reports 8,800+ Claims from Severe May Tornadoes, Raises CA Premiums

State Farm has reported receiving over 8,800 insurance claims following severe weather events from May 16 to 17 that caused significant wind, hail, and tornado damage across Missouri, Illinois, Kentucky, and Indiana. The insurer identified tornadoes in the St. Louis area and London, Kentucky as particularly destructive, prompting the establishment of catastrophe customer care centers to support impacted policyholders. Claim volumes are substantial, with Missouri accounting for approximately 4,110 home and auto claims, Illinois nearly 2,600 claims, Kentucky about 1,170 claims, and Indiana around 950 claims as of May 19.

Local authorities in St. Louis reported extensive damage with around 5,000 buildings affected by an EF-3 tornado, while Kentucky experienced significant destruction in London, including impacts to residences and airport facilities. Alongside State Farm, American Family Insurance also experienced increased claims activity related to storms on May 15-16, particularly in Wisconsin, deploying mobile claims centers in Eau Claire and Mayville. Additional claims were noted in Illinois, Michigan, Minnesota, and Missouri, with catastrophe-specialized field adjusters assisting in customer outreach and inspections.

These recent severe weather incidents continue a pattern of impactful storms affecting central U.S. states throughout the spring. Industry data indicates that insured losses from earlier tornado systems in late April are projected to total several hundred million dollars, underlining the financial exposure for insurers in the region.

Despite the surge in claims, State Farm received regulatory approval for a 17% emergency homeowner premium increase in California, effective June, which may influence the company's risk management and underwriting strategies amidst growing property damage exposures.

The ongoing severe weather challenges underscore the importance of catastrophe response preparedness and claim handling capacity for insurers active in tornado-prone regions. Monitoring claim trends and regulatory developments, including rate changes, will be critical for stakeholders managing property insurance portfolios in the affected states.