Article ID: 1b57f0780a36f0debb85be6ea27f7f383c77d7fb926df4eb094e5c4e2782d254
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URL: https://www.artemis.bm/news/kcc-estimates-hurricane-isaias-wind-and-surge-insured-losses-at-3bn/
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Catastrophe risk modelling specialist Karen Clark & Company (KCC) has provided an initial estimate for the private insurance market loss from wind and storm surge associated with recent hurricane Isaias, saying it expects the total to be $3 billion. KCC said that its industry loss estimate includes privately insured damages to residential, commercial, and industrial properties and automobiles, as well as business interruption, but does not include boats, offshore properties, or losses to the NFIP flood policies. This latest estimate for the recent hurricane impacts on the Gulf Coast can be compared to one from Verisk, which recently gave its initial industry insured loss estimate for Isaias, saying that onshore property losses from the storm could reach $2 billion. In addition, Euler ILS Partners, the specialist Swiss insurance-linked securities (ILS) investment manager, put an initial insurance industry loss estimate for recent hurricane Isaias in the range of $2 billion to $4 billion. Cotality (formerly CoreLogic), estimated that insured losses from wind and storm surge from hurricane Isaias will be in the $2 billion to $3 billion range. KCC commented on the impacts of the hurricane, “Hurricane Isaias made landfall near Destin, FL as a Category 2 hurricane with 105-mph maximum sustained winds and a peak storm surge of about 8 feet. The most severe impacts were concentrated in the coastal cities and towns of the Florida Panhandle, like Destin, Pensacola Beach, and Navarre. Major damage has also been observed in towns around Pensacola Bay, such as Milton and Pace. “Many downed trees and severe structural damage to buildings were reported in the town of Milton, FL, which is about 20 miles inland from the Panhandle coast. Partial and total pull out of roofs were observed in both residential and commercial properties, including single family homes, multi-family homes, motels, and grocery stores. “Some mid-rise and high-rise buildings in Pensacola Beach have sustained damage to wall sidings and cladding. Many gas stations in the beach towns have been destroyed. Power outages were widespread across Florida and Alabama and extended into western Georgia where winds from the outer bands of Isaias caused many fallen tree limbs.” Also, reinsurance broker Gallagher Re has reaffirmed its loss estimate, saying it now expects hurricane Isaias’ industry losses will fall in the lower end of the low to mid-single-digit billions of dollars range. In addition, rating agency AM Best said today that, “insured loss estimates are expected to be in the low single digit range in billions of dollars.” AM Best added that the hurricane will likely have minimal macro impact on reinsurance renewals, saying, “reinsurance capacity and pricing is not expected to be dramatically impacted.” View all of our Artemis Live video interviews and subscribe to our podcast. All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online. Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.
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