Storm Ida could cost insurers $ 30 billion

Posted on Oct 5, 2021, 11:40 a.m.Updated Oct 5, 2021, 4:22 PM

A little more than a month after the passage of the storm Ida, while Louisiana is still healing its wounds, the Swiss reinsurance giant Swiss Re estimated Tuesday the insured losses between 28 and 30 billion dollars for the whole of the sector.

With its winds at more than 240 km / hour, the category 4 hurricane, which hit the United States on August 29, could cost the Swiss reinsurer nearly $ 750 million, according to a first estimate.

Costlier than Storm Uri

Ida began by hitting Louisiana before reaching the northeastern United States, causing torrential rains and flooding in its path. In particular, the oil and gas infrastructure of the Gulf of Mexico had been severely affected, with an impact on production even greater than during Hurricane Katrina in 2005.

The costs to insurers from Storm Ida are nearly double the $ 15 billion in insured losses caused by Storm Uri in February, which caused an exceptional cold spell in Texas.

However, the damage caused by Ida is far from reaching the level of the losses caused by Katrina in 2005. With insured losses estimated at 65 billion dollars at the time (or 86 billion dollars today, taking into account inflation), the hurricane that ravaged New Orleans remains the costliest natural disaster in history for insurers.

For Europe, Swiss Re has also refined its estimates for losses from the floods this summer. These would reach $ 12 billion for the industry, with its own loss amounting to $ 520 million.

The costs of these events are added to the 40 billion dollars of insured losses linked to natural disasters estimated by Swiss Re in the first half of 2021. A level never exceeded at this stage of the year, except in 2011.

VIDEO. Hurricane Ida: New Orleans is left without electricity (August 30, 2021)

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