Thursday, September 14, 2017

Moody’s Analytics—"Hurricane Irma economic losses $58 – $83 billion" and "... Irma insured industry loss $25bn: Karen Clark & Co"

Two from Artemis:

Hurricane Irma economic losses $58 – $83 billion: Moody’s Analytics
Economic losses from hurricane Irma are likely to rise to somewhere within a range from $58 billion to $83 billion, according to Moody’s Analytics, with lost economic output contributing as much as $16 billion given the wide area impacted by the storm.

The estimate of economic loss includes both property damage and lost economic output, although the economic property damage is expected to be lower than from hurricane Harvey.

Hurricane Harvey (estimated at up to $108 billion of economic costs) caused a considerably larger economic loss than Irma, with water driving much more of the costs as flooding covered Texas. Irma, as more of a wind event, is likely to result in a higher impact to the private insurance and reinsurance market.

Irma will also be more of a reinsurance than insurance event, it is assumed, with retentions lower in Florida.
Moody’s Analytics said that hurricane Irma will be, “Among the costlier natural disasters in recent history but likely behind Harvey and Superstorm Sandy.”...MORE

Hurricane Irma insured industry loss $25bn: Karen Clark & Co.
Hurricane Irma satellite imageThe insurance and reinsurance industry loss from hurricane Irma has been estimated at $25 billion by catastrophe risk modelling firm Karen Clark & Company (KCC), with $18 billion of this from the United States and the remainder from the Caribbean.

The estimate does not include losses under the NFIP or crop losses, but do include property losses, insured structures, contents, business interruption, and automobiles.

Karen Clark & Company came up with the estimate using its high-resolution wind, storm surge and inland flooding risk models.

The $25 billion figure is significantly down on the market’s expectations for the industry loss from hurricane Irma, as at one stage it looked like the storm would barrel directly into Miami and cause a $100 billion or greater loss....MORE