The $100 Billion Hurricane?

[southerngale]

September 3, 2005

First Estimate Puts Storm's Economic Toll at $100 Billion

By JENNIFER BAYOT

A risk management firm yesterday offered the first estimate of economic losses from Hurricane Katrina - $100 billion - and said that private insurance would probably cover less than a quarter of that. Federal money and charitable contributions may need to do the rest.

Saying the damage already appeared far greater than expected, Risk Management Solutions in Newark, Calif., said that insured losses would range from $20 billion to $35 billion, much higher than the firm's initial estimate of $10 billion to $25 billion.

The new figures suggest that Hurricane Katrina will cost the insurance industry more than any other natural disaster on record, unseating Hurricane Andrew in 1992, which cost $21 billion in 2004 dollars, according to the Insurance Information Institute, an industry group. Katrina's price tag may also overshadow the $23 billion in insured losses caused by four large hurricanes last year in South Florida.

But there is far more that commercial insurers will not absorb.

Uninsured losses often include damage to roads, highways, utilities and public buildings, as well as the cost of government relief efforts. There is also the huge cost of not doing business, which the firm estimated at $100 million a day.

Not only will the total losses reach $100 billion, but they may keep climbing if efforts to repair the levees in New Orleans stall, said Kyle Beatty, a Risk Management Solutions meteorologist.

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[Coredesat]

Looks like Katrina's the new costliest storm on record...and by a HUGE margin.

[Josephine96]

If she's a $100 Billion storm.. Can you imagine what kinda storm would be needed to cost more than that

[Coredesat]

If she's a $100 Billion storm.. Can you imagine what kinda storm would be needed to cost more than that

I don't WANT to imagine that.

[GalvestonDuck]

I'm guessing a hit on the Manhattan area would do it or a slow-moving ultra-intense 5 in the Hou/Galv with all the perfect (a word I use grudgingly) conditions in place for it to remain a 5 into the bay would come close also.

[Stratosphere747]

Katrina will far exceed 100 billion.

This is not another "doom and gloom" response, but once the next quarterly economic reports start rolling in, we will begin to see the impact and a significant drop in the stock market.

[scostorms]

My guess when while it was still cat.5 was $135 billion. Looks like it may be inching closer!

[Derek Ortt]

yeah, an NYC cat 3 would easily top this. Thankfully, they are VERY rare