Happy Wednesday! In this week's Big I Buzz: what to expect for the 2025 tornado season. Plus, a look at how tariffs will impact the insurance industry.

What's In Store for the 2025 Tornado Season?

With spring just around the corner, now is the time to prepare for the possibility of severe weather. In 2024, the U.S. recorded its second-highest number of tornadoes in a single year, with 1,855 confirmed twisters. As spring arrives, severe weather is expected to ramp up again, with AccuWeather predicting that regions outside traditional Tornado Alley may continue to face the worst of these storms. A high-pressure system over the Southwest could suppress thunderstorms in the Plains, while unusually warm Gulf waters may fuel severe storms and tornadoes in the Mississippi Valley.

Looking ahead, thunderstorms are expected to become more widespread in May, impacting the Midwest, mid-Atlantic, and Tornado Alley. Additionally, derechos could pose an increasing threat from late spring into summer. However, overall tornado activity is projected to be lower than in 2024, with an estimated 1,300 to 1,450 twisters this year, including 75 to 100 in March, 200 to 300 in April, and 250 to 350 in May. Read more here.

Tariffs Will Negatively Affect Insurance Industry, Says AM Best

AM Best analysts warn that proposed U.S. tariffs on imports from Canada, Mexico, and China could negatively impact the insurance industry, particularly homeowners’ and auto insurance. A senior director at AM Best highlighted that supply chain disruptions in the auto sector could drive up repair and replacement costs, posing a financial challenge for insurers. Modern vehicles, equipped with advanced technology, are already expensive to fix, and tariffs may further inflate those costs.

Similarly, the homeowners’ insurance market could see rising expenses as tariffs increase the cost of building materials like lumber. As a result, replacement costs are expected to increase. Read more here.

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