Insured losses from Irma could total $50bn
Major impact: storm damage in the aftermath of Hurricane Irma in St Martin in the Caribbean. Risk modelling company AIR Worldwide has estimated industry insured losses caused by the hurricane in the US and Caribbean will total from $32 billion to $50 billionInsurers are expected to pay out between $32 billion and $50 billion to policyholders affected by Hurricane Irma in the US and Caribbean.
That is the estimate of AIR Worldwide, the Boston-based risk modelling solutions company.
The company believes industry insured losses in the US resulting from Irma will range from $25 billion to $35 billion, while for the Caribbean the range will be between $7 billion and $15 billion.
Irma was a Category 5 hurricane, the most powerful recorded in the Atlantic Ocean, when it hit the island of Barbuda in the eastern Caribbean on September 6. It then struck a number of other islands, including St Kitts and Nevis, Anguilla, St Martin/St Maarten, St Barts, the British and US Virgin Islands, Turks and Caicos, and Cuba.
Irma was a Category 4 hurricane when it made landfall at the southern tip of Florida on September 10, before tracking along the state’s western coast.
In a statement, AIR said: “Most of Florida was in peril due to the massive size of the storm, as hurricane-force winds extended 80 miles from the eye, and tropical storm — force winds extended more than 400 miles, covering the entire state and driving storm surge into both the Atlantic and Gulf coasts.”
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’s US estimates do not include losses paid out by the National Flood Insurance Program; losses resulting from the compromise of existing defences; 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.
While 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, but 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 defences; and losses to uninsured properties.
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