Ida loss estimates climb to $44 billion
Insured losses from Hurricane Nicholas, which struck Texas earlier this month, are likely to be U$1.1 - $2.2 billion, according to RMS.
The catastrophe risk modeller expects losses of up to $1.4bn from wind and storm surge and private inland flood losses up to $0.3bn. The National Flood Insurance Program (NFIP) will see losses up to $0.5bn, it added.
Losses reflect property damage and business interruption to residential, commercial, industrial and automobile business lines and consider sources of post-event loss amplification. RMS expects most wind and storm surge losses to come from Texas, while the majority of the NFIP and insured flood losses are to come from Louisiana.
The hurricane made landfall on September 14, 2021, near Sargent Beach in Texas as a Category 1 hurricane with maximum sustained winds of 75 miles per hour (120 km/h). It brought hurricane-force winds and prolonged heavy rainfall to the central Gulf Coast, including many areas in southern Louisiana.
“A notable impact from this event is the rainfalls, especially in Louisiana, where many towns and cities are still in the early stages of recovery after Hurricane Ida,” said Jeff Waters, senior product manager for RMS North Atlantic hurricane models.
RMS event response teams estimate that about 40 percent of postal codes in Louisiana impacted by flooding from Nicholas were also hit by flooding from Ida, he added.
“We expect the overlapping nature of these two storms to further amplify losses, including the risk of rainfall infiltration, and to prolong the claims settlement process.”
Hurricane Nicholas was the fourteenth named storm of the 2021 North Atlantic hurricane season, the sixth hurricane, and the second hurricane to make landfall.
RMS, Hurricane Nicholas, Insured Losses, Catastrophe, Risk Modelling, Insurance, Reinsurance, Jeff Waters, North America