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Hurricane Hanna industry loss estimated around $350m by KCC


Hurricane Hanna’s impacts in Texas after its landfall packing 90 mph sustained winds over the weekend is estimated to have caused an insurance market loss of roughly $350 million by catastrophe risk modeller Karen Clark & Company (KCC).

karen-clark-logoReflecting the relatively rural and less populated or urbanised region of the Texas coastline that hurricane Hanna struck at the weekend, the estimate is for a lower insurance and reinsurance loss impact than was seen for tropical storm Fay, which was only a 60mph storm at landfall but struck a region with higher values exposed and was estimated to have cost re/insurers $400 million.

KCC said that based on its high-resolution US Hurricane Reference Model, the company estimates the insured loss from Hurricane Hanna will be close to $350 million.

This estimate includes privately insured wind and storm surge damage to residential, commercial and industrial properties, as well as to automobiles. But it does not include NFIP losses, which are expected to be reasonably high given hurricane Hanna’s rainfall totals were in excess of one foot in some areas.

KCC highlights that hurricane Hanna was the first hurricane of the 2020 Atlantic tropical storm season, but already the fourth to make landfall.

The Category 1 hurricane made landfall with 90 mph maximum sustained winds on Padre Island, Texas, on July 25th.

Low levels of wind damage were seen across southern parts of Texas, with low to moderate storm surge impacts experienced across the coastal areas from the southern Texas border to Port Lavaca.

KCC explained that hurricane Hanna left more than 200,000 customers without power and that low to moderate levels of wind damage were sustained throughout the Rio Grande Valley.

Hurricane Hanna’s passage was characterised by damage to signage and lightweight structures, such as gas station pavilions and marinas, which were relatively commonly seen. Other damage seen included roof and siding damage with rare instances of more severe structural damage, KCC said.

In addition, Corpus Christi, Port Mansfield, McAllen, and other coastal Texas towns all experienced storm surge flooding from hurricane Hanna that affected residential and commercial buildings.

At around the $350 million mark, hurricane Hanna’s industry losses are expected to largely fall to the insurance market, with little need for reinsurance capital support expected to be seen.

Also read: Hurricane Hanna, the first hurricane of the season, makes landfall in Texas.

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