Verisk estimates Hurricane Isaias insured onshore property losses in $1bn to $2bn range

Verisk, a catastrophe risk modelling and data analytics specialist, has now issued an initial industry insured loss estimate for recent hurricane Isaias, saying that onshore property losses from the storm could reach $2 billion.

Verisk’s initial industry loss estimate includes losses from wind and privately insured storm surge, as a result of hurricane Isaias’ landfall in the Florida Panhandle.

The company added that wind damages are expected to account for the vast majority of insured losses from the storm.

Verisk further said that its estimate includes losses to onshore residential, commercial and industrial properties and automobiles for building, contents and time-element coverages, with modeled scenarios that incorporate losses from wind and storm surge.

The company expects that losses from precipitation-induced flooding will not be a significant factor with Isaias.

Commenting on the damages seen, Verisk added, “The most severe wind damage occurred west of Isaias’ landfall location, particularly in Florida’s Santa Rosa and northeastern Escambia counties. Reported impacts included roof damage, structural damage, downed trees and widespread debris. In Okaloosa County, the most common damage mechanism was trees falling onto residential structures. Overall, the event was characterized primarily by wind-related damage, including fallen trees, damaged roofs, fencing losses and debris impacts.

“Power outages were widespread across the Florida Panhandle, with some counties reporting outages affecting a majority of residents. Additional impacts were reported in Alabama and Georgia, where the weakening storm and its remnants caused downed trees and further power disruptions.”

This first initial insurance market loss estimate for hurricane Isaias from Verisk is one of the lower available so far, although within the anticipated low to mid single digit billion range.

As we reported earlier, Euler ILS Partners, the specialist Swiss insurance-linked securities (ILS) investment manager, put an initial insurance industry loss estimate for recent hurricane Isaias in the range of $2 billion to $4 billion.

Cotality (formerly CoreLogic), estimated that insured losses from wind and storm surge from hurricane Isaias will be in the $2 billion to $3 billion range.