Insurance claims stemming from hail-relateddamage have increased markedly in the past two years, according tothe National Insurance Crime Bureau (NICB). In its latest ForeCASTreport, NICB points to an 84-percent rise in the number of claimslogged in 2012 compared to that in 2010. To put things intoperspective, 467,602 hail damage claims were filed in 2010,followed by 689,267 in 2011, and then 861,597 in 2012.

It's no secret the nation has experienced severe storms ofescalating magnitude and frequency. These storms have produceddamaging winds, tornadoes, hail that have affected a larger swathof the U.S. The reason these storms are occurring in rapidsuccession is a subject of contentious debate, yet theirfar-reaching impact is clear—extensive property damage and, byextension, a mound of personal and commercial p&c claims.

Typical property damage from hail events can be as minimal as afew broken shingles or can amount to the decimation of multiplebuildings. NICB's report, which focuses solely on insurance claimsresulting from hail damage, not loss of life, is divided into twosections. The first analyzes overall U.S. hail loss claims from2010 through 2012, whereas the second section examines hail lossquestionable claims (QC) submitted during the same timeframe.

One of the most dramatic takeaways in NICB's overall assessmentis the sheer volume of claims processed by its member companies. Infact, more than 2 million hail damage claims were processed fromJanuary 1, 2010 to December 31, 2012. During this period, thelargest number of claims originated in Texas, which logged a totalof 320,823. In 2010, 2011 and 2012, Texas saw 557, 741 and 795 hailevents, respectively. NICB notes that claims activity follows thehail storm activity as posted on the National Weather Service'sStorm Prediction Center. Trailing behind the Lone Star state isMissouri, with 138,857; Kansas, with 126,490; Colorado, with118,118; and Oklahoma, with 114,168.

Despite the overwhelming rise in hail-related damage claimsoverall, the number of related QCs submitted to NICB for closerinspection was more subtle. In total, 3,829 QCs, designated with aloss type of “hail,” were reported between January 1, 2010 andDecember 31, 2012. Hail loss QCs decreased 4 percent between 2010and 2011, then increasing 4 percent between 2011 and 2012. Onceagain leading the way, Texas was the state with the largestcombined total of hail loss QCs, followed by Illinois, Colorado andArizona. The top ten states on the list represented 76 percent ofthe total hail loss QCs during the 2010-2012 timeframe. Forinstance, Texas reported 1,053 QCs, or 28 percent of the totalnumber of QCs between January 1, 2010 and December 31, 2013.

For a list of the Top 5 QC referral reasons and to access morehighlights of the report, view the accompanying PC360 slideshow.