Insurers could be hit by Hurricane Aida for $ 18 billion: industry experts


Insurers are preparing for a hit of about $ 18 billion from US and Caribbean hurricane Ida, catastrophe modeling firm Karen Clark & ​​Co (KCC) said Wednesday.

The number near the lower limit of the initial quote given by insurance analysts while the storm was still raging earlier this week is the first from one of the industry’s leading risk modeling experts.

KCC said $ 40 million worth of insurance losses were incurred in the Caribbean and the rest were storm surge losses in the United States.

Hurricane Aida landed in the United States as a Category 4 storm on Sunday after landing from the Gulf of Mexico and causing extensive flooding under heavy waves and torrential rains.

Insurance experts estimated hurricane Aida’s claims at $ 15 to $ 30 billion earlier this week, but this number is higher as pandemic pricing has boosted the cost of timber and reconstruction efforts. Warned that it could be.

According to experts, extensive estimates based on models that track the severity and path of storms could be far less than the $ 87 billion billed by Hurricane Katrina in 2005, adjusted for inflation.

Rating agency Fitch said losses from Aida are likely to exceed $ 15 billion from winter storm Uri and $ 10 billion over Hurricane Laura, the most expensive insured catastrophe event in 2020. Stated.

According to KCC data, the strongest maximum sustained winds at landing in Louisiana are the links between the 1856 Last Island Hurricane and the 2020 Hurricane Laura and Aida.

The forecast includes damage to privately-owned residential, commercial, industrial real estate and automobiles, and does not include losses under boats, offshore real estate, or national flood insurance programs.

UBS analysts said the fallout from Aida hit Swiss Re and Lancashire profits per share by 32% and 30%, respectively, with Hannover Reinsurance and Munich Re, the industry leader in reinsurance, the most. He said he would not be hit.

By Noor Zainab Hussain and Carolyn Cohn