Insurers may undergo $ 18 billion in harm from Hurricane Ida: Specialists – Enterprise Insurance
(Reuters) – Insurers anticipate a roughly $ 18 billion blow from Hurricane Ida in the United States and the Caribbean, said disaster model company Karen Clark & Co. on Wednesday with.
The number, which is closer to the lower end of early estimates from insurance analysts when the storm raged earlier this week, is the first from one of the industry's top risk modeling experts.
KCC said the $ 40 million insured loss in the Caribbean and the remainder would be wind and storm surge damage in the United States.
Hurricane Ida landed in the United States as a Category 4 storm on Sunday after swept ashore from the Gulf of Mexico and flooded large areas with heavy surf and torrential rainfall.
Insurance experts reported $ 15 to $ 30 billion in losses earlier this week.
The far-reaching estimates, based on models that track the severity and course of the storm, are still well below the $ 87 billion caused by Hurricane Katrina in 2005, adjusted for inflation, according to experts.
According to Fitch Ratings Inc., Ida's losses are likely to exceed those of Winter Storm Uri at $ 15 billion and Hurricane Laura – the most expensive insured catastrophe event of 2020 – at $ 10 billion.
KCC said its data showed that Ida was linked to the last island hurricane in 1856 and Hurricane Laura in 2020 for the strongest maximum sustained winds on landfall in Louisiana.
The forecast includes damage to privately insured residential, commercial, and industrial property, and automobiles, and excludes boats, offshore properties, or damage covered by the U.S. National Flood Insurance Program.
UBS analysts said the Ida impact hit Swiss Re and Lancashire's earnings per share by 32% and 32% respectively.