tropical storm Zeta 2020

Catastrophe risk modeller RMS has now weighed in with its estimate of insurance and reinsurance industry losses likely to come from recent hurricane Zeta’s impacts to the United States and it’s a little higher than other modeller estimates.

Catastrophe risk modeller AIR Worldwide estimates that hurricane Zeta’s onshore wind and storm surge insured losses in the United States will be less than $3.5 billion, with the bottom-end of its range far lower at $1.5 billion.

Hurricane Zeta’s wind and storm surge impacts on Mexico and the United States are expected to cost the insurance and reinsurance market close to $4.4 billion, according to an early estimate from Karen Clark & Company.

Impacts and in particular wind damage from hurricane Zeta have spread far inland across the United States, bringing back memories of Isaias earlier this year.

The impacts and eventual insurance market losses from hurricane Zeta’s landfall on the Louisiana Gulf Coast is not expected to result in any direct losses to catastrophe bonds, but may move the price on certain aggregate cat bonds, according to Plenum Investments.

Hurricane Zeta made landfall in Louisiana with 100 mph sustained winds yesterday evening, having intensified as it approached the Gulf Coast, against meteorologists earlier expectations.

Hurricane Zeta is forecast to make landfall in Louisiana later today, Wednesday, and the hurricane is strengthening as it tracks towards the northern Gulf Coast, with sustained winds now reaching 100 mph and a chance of the storm sustaining Category 2 status through until it makes landfall.

Zeta intensified into a hurricane prior to making landfall on Mexico’s Yucatan peninsula and while it may emerge back into the Gulf of Mexico a little weaker, the forecast suggests hurricane Zeta will approach the Louisiana region of the northern Gulf Coast for a Wednesday landfall.

The northern Gulf of Mexico coastline and in particular Louisiana is facing another strong tropical storm or perhaps even a hurricane threat this week, as Zeta, the 27th named storm of the 2020 Atlantic season takes aim.