We are seeing the loss estimate for Hurricane Ida increase significantly since we initially reported at the end of August. Modelled losses from several companies, including Karen Clark and Company and RMS, were initially around $17bn, however, following the extensive flooding in the Mid-Atlantic, Ohio Valley and North East of the US, estimates have increased, with many companies predicting an industry loss of over $30bn. RMS is currently predicting the industry loss to be between $31bn and $44bn, with wind and storm surge losses between $21bn and $28bn and offshore energy losses in the Gulf of Mexico predicted to be $1.5bn. The balance of the estimate emanates from flood losses, with $4.5bn to $7bn falling on the private market and $1.5bn to $2bn covered by the government backed NFIP scheme.
Alpha comment: It is not surprising to see the industry loss increase, given the power of the hurricane and the scale of the flooding caused across the country. However, the power outages in Louisiana have meant loss adjustors have not yet had the opportunity properly to assess the damage. It will be weeks, if not months, before an accurate loss estimate can be possible.