KCC estimates hurricane Debby privately insured losses at close to $1.4bn

Catastrophe risk modelling specialist Karen Clark & Company (KCC) is the latest with an estimate of industry losses from recent hurricane Debby, saying the private market insured loss is expected to be close to $1.4 billion.

This estimate compares to one calling for hurricane Debby to result in a private and public market insured loss of up to $2 billion from reinsurance broker Gallagher Re that was issued one week ago.

While an estimate from Moody’s RMS released earlier today said the private insurance market industry loss in the United States after recent hurricane Debby is not expected to exceed $1.5 billion.

As stated before, the expectation was that the majority of losses from hurricane Debby would fall below reinsurance attachment points, while cat bond fund managers Icosa, Plenum and Twelve had all said no direct impact to cat bonds was expected.

At the level of loss estimates are now converging around, this is expected to remain the case.

KCC said that the privately insured market loss in the US of close to $1.4 billion breaks down into roughly $845 million from wind, $130 million from storm surge, and $440 million from inland flooding.

KCC’s estimate includes privately insured damage to residential, commercial, and industrial properties and automobiles, as well as business interruption. But does not include boats, offshore properties, or NFIP losses.