Boston’s catastrophe modeller KCC says insurers may take $18bn hit from Hurricane Ida

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Boston’s catastrophe modeller KCC says insurers may take $18bn hit from Hurricane Ida

US insurers have been psyching up for a whopping $18 billion in claims from Hurricane Ida in the United States alongside the Caribbean, a Boston-based catastrophe modeller Karen Clark & Co (KCC) said in a statement on Wednesday.

In factuality, the figure, which came forth at a lower end of an initial projection made earlier this week when the ‘Category 4’ Hurricane was still rampaging parts of US Gulf of Mexico, had been the first from any major industry modelling experts.

Apart form that, KCC said in a statement that insurers should brace for a lump-sum of $40 million in losses in the Caribbean and the remainders in the United States.

Latest projection from KCC came forth a couple of days after Hurricane Ida, a Category IV storm, had made landfall in the US Gulf of Mexico that later swept wide areas and led to torrential rains. However, over the weekend, insurance experts had forecasted between $15 billion to $30 billion in claims from Hurricane Ida, nonetheless, also had flagged an utter caution that the losses could be higher, in particular due to a soaring inflation alongside a pandemic-led rapid build-up in price pressures that has been lifting timbre and labour costs lately.

Insurers brace for $18 billion in claims from Hurricane Ida

Nevertheless, insurers’ losses in claims in the United States, would likely to be much lower than a jawdropping $87 billion which the industry had witnessed during Hurricane Katrina back in the 2015s.

Still, US-based rating agency Fitch was quoted saying in a statement that the losses in claims from Ida would highly likely to top those from the winter storms, as Uri costed an upsum of $15 billion and insurers’ losses in Hurricane Laura, the costliest insurance claim in 2020, stood at $10 billion.