AIR Worldwide Estimates Combined Insured Losses for Hurricane Irma for the United States and Selected Islands in the Caribbean Will Be Between USD 20 Billion and USD 65 Billion
(Thomson Reuters ONE) -
BOSTON, Sept. 9, 2017 - Catastrophe modeling firm AIR Worldwide estimates
combined insured losses for Hurricane Irma for the United States and selected
islands in the Caribbean will be between USD 20 Billion and USD 65 Billion. For
the United States, AIR's estimated industry insured losses resulting from
Hurricane Irma's wind and storm surge range from USD 15 billion to USD 50
billion. Note that these estimates are based on the NHC's Saturday, September
9, 5:00 a.m. EDT forecast advisory for Irma. For selected islands in the
Caribbean, AIR's estimated industry insured losses resulting from Hurricane
Irma's wind and precipitation-induced flooding range from USD 5 billion to USD
15 billion. AIR Worldwide is a Verisk Analytics (Nasdaq:VRSK) business.
Irma is currently a Category 3 hurricane with maximum sustained winds of 130
mph. Although its intensity is likely to fluctuate over the next few days, it is
forecast to re-intensify to a Category 4 or stronger hurricane as it draws
closer to Florida. Irma is a massive storm. Hurricane-force winds extend up to
70 miles from its center, and tropical-storm-force winds are being experienced
on a radius of 185 miles.
Hurricane Irma caused catastrophic damage as it passed through Antigua and
Barbuda, St. Kitts and Nevis, Anguilla, St. Martin, St. Barts, and the British
and U.S. Virgin Islands. It is still too soon for the full extent of damage to
be known, but it is clear that there has been extensive damage to buildings and
infrastructure, roads are blocked, and many people have been rendered homeless.
While Antigua escaped comparatively unscathed, nearby Barbuda has been
devastated, with most buildings damaged. Passing just to the north of Puerto
Rico, the Dominican Republic, and Haiti, Irma delivered powerful winds and heavy
precipitation. Flooding, widespread power outages, and damage to vegetation are
reported, but no widespread or severe property damage. In Puerto Rico, where up
to 15 inches of rain were expected, up to a million people lost power. Irma is
now impacting the Bahamas, which implemented an unprecedented evacuation of six
southerly islands ahead of the storm, and Cuba, which is bracing itself for
flooding, and damage to buildings and crops.
Hurricane and storm surge warnings and watches extend from the Bahamas through
central Florida. Preparations in Florida began early this week with initial
mandatory evacuations for visitors of the Keys, which were then extended to
residents. By Thursday morning, the Florida governor had ordered mandatory
evacuations for more than 650,000 people in Miami-Dade County-the first
mandatory evacuation for Miami-Dade in 12 years, which is expected to be the
largest ever attempted. Mandatory evacuations have also been ordered in the
Tampa area and Palm Beach Island, and voluntary evacuations have been ordered
for the southern half of Lake Okeechobee, as well as Palm Beach and Glades
counties.
At least two nuclear plants in Florida were shut down as a precautionary
measure: the Turkey Point plant and the St. Lucie plant. The U.S. Army Corps of
Engineers drew down the levels in Lake Okeechobee and inspected the dam for
safety. The South Florida Water Management District lowered water levels in
canals as they plan for flooding and storm surge dangers. Of note, relative sea
level on the Miami coast has risen 3.3 inches since Hurricane Andrew struck the
area 25 years ago, and Miami-Dade County's population has grown 35 percent.
The Georgia governor declared a state of emergency in at least six coastal
counties, and issued mandatory evacuation orders for the City of Savannah and
surrounding Chatham County.
Farmers and food companies in the projected path are scrambling to protect
machinery, processing facilities, livestock, and resources; as well as stock up
on supplies. Many are concerned that cotton fields in North and South Carolina
and Texas could be further damaged after taking a reported USD 150 million hit
from Hurricane Harvey. Known for cotton, grain, and livestock, agriculture in
the Carolinas and Georgia may be affected by Irma if the projected path holds.
According to AIR, in Florida, close to 80% of the total insured value is located
in coastal counties, where the amount and value of exposure has been growing
significantly for decades. The Miami metropolitan area has the highest
population concentration in the southeastern region. Since Hurricane Andrew in
1992, Florida's building codes have been continually revisited and improved
after damage from subsequent hurricanes, and are now the strictest in the
country for hurricane damage resistance.
The state's codes since 2002 have been based on the International Building and
Residential Code. Building structural capacities appeared to have improved since
Hurricane Andrew because of stronger building codes and better enforcement,
resulting in less structural damage overall even from intense hurricanes during
the 2004-2005 hurricane season. Because of these enhancements, AIR expects newer
structures in the region will perform better than older structures.
According to AIR, residential construction in Florida is dominated by wood-frame
and masonry construction; for the same building code, the latter is typically
more resistant to high winds in comparison to the former. Modern timber
Construction can be less vulnerable than masonry construction from older codes.
As in the case of the 2004 hurricane season, significant damage may be expected
to roof covers related to installation and attachment methods. Manufactured
homes are vulnerable to significant damage during hurricanes and their
performance tends to be a function of age and of the regulations under which the
home was constructed and installed.
Hurricane Irma is forecast to continue moving toward the west-northwest at about
14 mph for the next day or so, with its forward motion slowing as it progresses.
It is expected to be turning to the northwest by late Saturday and to be
approaching the Florida Keys and the southern Florida Peninsula as a powerful
Category 4 hurricane on Sunday morning.
AIR's loss estimates for the U.S. include wind and storm surge damage to onshore
residential, commercial, and industrial properties and their contents,
automobiles, and time element coverage (additional living expenses for
residential properties and business interruption for commercial properties).
AIR's Caribbean loss estimates include wind and precipitation-induced flooding
damage to onshore residential, commercial, and industrial properties and their
contents, automobiles, and time element coverage (additional living expenses for
residential properties and business interruption for commercial properties).
AIR continues to monitor Hurricane Irma and will issue updates as warranted.
About AIR Worldwide
AIR Worldwide (AIR) provides risk modeling solutions that make individuals,
businesses, and society more resilient to extreme events. In 1987, AIR Worldwide
founded the catastrophe modeling industry and today models the risk from natural
catastrophes, terrorism, pandemics, casualty catastrophes, and cyber attacks,
globally. Insurance, reinsurance, financial, corporate, and government clients
rely on AIR's advanced science, software, and consulting services for
catastrophe risk management, insurance-linked securities, site-specific
engineering analyses, and agricultural risk management. AIR Worldwide, a Verisk
Analytics (Nasdaq:VRSK) business, is headquartered in Boston with additional
offices in North America, Europe, and Asia. For more information, please visit
www.air-worldwide.com.
###
For more information, contact:
Kevin Long
AIR Worldwide
+1-617-267-6645
klong(at)air-worldwide.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: AIR Worldwide via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 09.09.2017 - 15:20 Uhr
Sprache: Deutsch
News-ID 559333
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Kategorie:
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