(Reuters) – Insurance companies are preparing for a hit of about 18 billion dollars from Hurricane Ida in the US and the Caribbean, said the disaster modeling company Karen Clark & Co on Wednesday.
The number closer to the lower end of initial estimates from insurance analysts while the storm was still raging earlier this week, is the first from one of the industry's biggest risk modeling experts.
KCC said the insured loss would cost $ 40 million in the Caribbean and the rest from losses from wind and storm surges in the United States
Hurricane Ida landed in the United States on Sunday as a Category 4 storm, after sweeping ashore from the Gulf of Mexico, flooded vast areas during heavy surf and heavy rain.  Insurance experts had earlier this week estimated $ 15 to $ 30 billion in claims from Hurricane Ida but warned that the figure could be higher, in part due to pandemic prices that have pushed up the cost of timber and labor to rebuild.  The comprehensive estimates, based on models tracking the severity and path of the storm, are likely to still be much less than $ 87 billion in claims from Hurricane Katrina in 2005, when adjusted for inflation, according to experts.
Fitch Ratings Inc. said losses from Ida are likely to surpass those from the winter storm Uri to $ 15 billion and Hurricane Laura – the most expensive insured disaster event in 2020 – to $ 10 billion.
KCC said that its data showed that Ida was associated with Last Island Hurricane 1856 and Hurricane Laura 2020 for the strongest maximum winds when landing in Louisiana.
The forecast includes damage to privately insured residential, commercial and industrial properties and cars, and excludes boats, offshore properties or losses that fall under the US National Flood Insurance Program.
Analysts from UBS said that the fallout from Ida would hit Swiss Re and Lancashire's earnings per share the hardest, with 32% and 30% respectively, while Hannover Re and leader of the reinsurance industry Munich Re would be least affected.