Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Hurricane Irene estimated to have caused $3 billion to $6 billion in U.S. losses; AIR Worldwide


Risk modelling firm AIR Worldwide have released an estimate for insured losses to U.S. onshore properties from hurricane Irene. They expect the final bill to be somewhere in the $3 billion to $6 billion range for re/insurers. This estimate includes wind and storm surge damage to onshore residential, commercial and industrial properties and their contents, automobiles, and time element coverage (such as business interruption).

AIR Worldwide raise an interesting disconnect between the National Hurricane Centres windspeed reporting when hurricane Irene made landfall in North Carolina and the actual windspeeds recorded on the ground. While the NHC was reporting windspeeds of 85mph when Irene made landfall, weather stations on the ground were recording speeds of just 50mph to 60mph, a significant difference that will reduce the losses from what might have been imagined to be reasonable.

They say this difference could be due to winds in the atmosphere being transferred inefficiently to the ground. Some uncertainty remains in their estimate due to the lack of clarity around actual surface wind speeds. Of course the windspeed in the atmosphere is not what matters when it comes to damage levels, it is the actual windspeed at ground level that matters.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.