Monday 27 May, 2019

Hurricane losses estimated as high as US$50 billion

Catastrophe modeling firm AIR Worldwide estimates combined industry insured losses for Hurricane Irma for the United States and the Caribbean will range from US$32 billion and US$50 billion.

AIR estimates industry insured losses for the United States resulting from Hurricane Irma will range from US$25 billion to US$35 billion.

For the Caribbean, AIR estimates that industry insured losses will range from US$7 billion to US$15 billion. 

AIR has dispatched engineers to the areas impacted by Irma; findings will be released in the coming weeks.

AIR’s estimated industry insured losses for the United States resulting from Hurricane Irma include wind and storm surge damage to onshore residential, commercial, and industrial properties and their contents; and auto.

AIR U.S. estimates do not include losses paid out by the National Flood Insurance Program (NFIP); losses resulting from the compromise of existing defenses (e.g., natural and man-made levees); losses to uninsured properties; losses to infrastructure; losses to inland marine, marine cargo and hull, and pleasure boats; or losses from hazardous waste cleanup, vandalism, or civil commotion, whether directly or indirectly caused by the event.

For the Caribbean, AIR’s losses include wind and precipitation-induced flooding damage to onshore residential, commercial, and industrial properties and their contents, auto, and time element coverage (additional living expenses for residential properties and business interruption for commercial properties).

AIR’s Caribbean estimates do not include losses to infrastructure; losses from hazardous waste cleanup, vandalism, or civil commotion whether directly or indirectly caused by the event; demand surge; losses to offshore properties; pleasure boats, and marine craft; losses resulting from the compromise of existing defenses (e.g., levees); and losses to uninsured properties.

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