Published On: Wed, Sep 13th, 2017

Insurance company says cost of Harvey and Irma damage could hit $70bn USD

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According to the Guardian, the insured damage caused by hurricanes Harvey and Irma is expected to be $50bn to $70bn USD, according to the boss of a Lloyd’s of London insurer.

Bronek Masojada, chief executive of Hiscox, said insured losses for Harvey, which resulted in widespread flood damage, were running at $20-$30bn; while the cost of Irma was expected to be $30bn-$40bn.

Masojada was using estimates from the risk modelling firm AIR Worldwide. A rival risk analysis firm, RMS, estimated insured losses from Harvey could be up to $35bn, which would take the total to $75bn.

The insurer said the claims would make 2017 one of the worst years for natural disasters with the hurricane season not yet over.

However, the scale of the destruction caused by Irma, while vast, was less than had been feared and insurance shares rose on Tuesday September 11.

Estimates had put the total economic cost, which includes uninsured losses, at $200bn to $300bn over the weekend. Masojada said only one in six Houston homeowners had house insurance.

He warned that the price of insuring property would now rise across the US, not just in the worst affected states of Texas and Florida and beyond.


Click here for full article on The Guardian




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