KCC estimates privately insured hurricane Melissa losses at $2.4bn

Catastrophe modelling firm Karen Clark & Company (KCC) is the latest to issue an estimate for the insurance industry loss from recent major hurricane Melissa, pegging the total at US $2.4 billion.

KCC explained that based on its high-resolution KCC Caribbean Hurricane Model, the $2.4 billion estimate includes the privately insured damage to residential, commercial, and industrial properties in Jamaica and Cuba.

Just this morning we reported that catastrophe modeller Cotality had said hurricane Melissa is estimated to have caused insured losses in a range from US $1 billion to US $2.5 billion in Jamaica.

Meanwhile, Verisk’s Extreme Event Solutions division had said that insured industry losses to onshore property in Jamaica from Hurricane Melissa will likely range between $2.2 billion and $4.2 billion.

While broker Aon said that Melissa’s impacts on Jamaica are likely to drive economic and insured losses into the single-digit billions of dollars, with the potential to rise further as additional damage assessments are completed.

KCC noted in its report that, “While this storm devastated parts of Jamaica and Cuba, the insured impact will be significantly less than the total economic impact due to low insurance penetration rates.”

KCC’s insurance market loss estimate for hurricane Melissa is aligned with the rest of the industry.

As we explained in our report this morning, Jamaica’s Prime Minister has explained the size of the protection gap and the effect Melissa will likely have on the island’s economy.

Also read for more news on Jamaica’s catastrophe bond:

– Hurricane Melissa crosses Jamaica cat bond parametric boxes at 892mb, 100% payout likely.

– Hurricane Melissa losses in Jamaica likely to fall to reinsurers, says AM Best. BMS suggests $5bn+.

– Melissa insured impacts in the billions. Jamaica cat bond full loss most likely: Twelve Securis.

– Jamaica’s cat bond “doing what it was designed to do” – Lefferdink, Aon Securities.

– Hurricane Melissa estimated single-digit billion insured loss. Cat bond payout likely: Aon.

– Jamaica cat bond marked near zero after Melissa landfall. Calculation process underway.

– World Bank says Jamaica catastrophe bond payout “likely” for hurricane Melissa

– No adverse ILS market reaction expected from Melissa cat bond payout: Fitch