The rioting and looting following the death of George Floyd will cost the insurance industry more than any other violent demonstrations in recent history.
The protests took place in 140 U.S. cities and while much was peaceful, a great deal was violent with arson, vandalism and looting. The damage caused by the rioting and looting will result in at least $1 billion to $2 billion of paid insurance claims — eclipsing the record set in Los Angeles in 1992 after the acquittal of the police officers who brutalized Rodney King.
A company called Property Claim Services (PCS) has tracked insurance claims related to civil disorder since 1950. It classifies anything over $25 million in insured losses as a “catastrophe,” and reports that the unrest this year (from May 26 to June 8) will cost the insurance industry far more than any prior one.
- That number could be as much as $2 billion and possibly more, according to the Insurance Information Institute (or Triple-I), which compiles information from PCS as well as other firms that report such statistics.
- The protests related to George Floyd’s death are also different because they are so widespread. “It’s not just happening in one city or state — it’s all over the country,” Loretta L. Worters of the Triple-I tells Axios.
- “And this is still happening, so the losses could be significantly more.”