Hurricane Dorian inflicted an estimated $7 billion in total insured and uninsured losses on the Bahamas, according to catastrophe risk modeling firm Karen Clark & Company (KCC).
This includes building, contents, and business interruption exposures for commercial, residential and industrial properties. The estimate does not include infrastructure or auto losses.
KCC told Insurance Journal that at this time it is not estimating what share of the total losses in the Bahamas might be insured but that using past hurricanes as a guide, from 40% to 70% could be insured.
According to Bloomberg, analysts at UBS Group AG estimate the storm losses will be greater, as much as $10 billion in insured losses, which is lower than the bank’s initial forecast of $25 billion.
KCC estimates that the total losses on New Providence will be about $1 billion; Grand Bahamas about $2 billion; and Abaco, $4 billion.
Losses would have been even worse had New Providence, the most populated island, felt the full impact of Dorian, the report notes.
The KCC report says Dorian will “go into the history books” as the having produced the “most intense wind speeds over land and for the longest duration.”
Abaco felt Dorian at its most intense speeds up to 185 mph and for a prolonged period. KCC notes that winds of this magnitude cause major structural damage to wood frame and masonry buildings, which describes the building stock on the Bahamas. Abaco also experienced major storm surge flooding. Most residential and other buildings on Abaco suffered total damage, the report says.
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