Privately insured losses from Hurricane Francine have been initially estimated as close to $1.5 billion, according to catastrophe risk modelling specialist Karen Clark & Company (KCC).
Based on the high-resolution KCC US Hurricane Reference Model, the firm’s estimate includes the privately insured damage to residential, commercial, and industrial properties and automobiles, as well as business interruption.
It also noted that its figure does not include boats, offshore properties, or NFIP losses.
Analysts from RBC Capital Markets said that Francine’s losses are expected to be manageable for property and casualty insurers, while minimal impacts are expected to the reinsurance market.
While losses will be manageable for reinsurers, it will be primary insurers who will bear costs, analysts at AM Best stated.
“The landfall location (sparsely populated with a limited economic impact) and the nature of the peril (more of a flood event than a wind event) implies that, even for primary insurers, the losses may be manageable in aggregate,” the rating agency added.
Jason Hopper, Associate Director, AM Best, continued, “However, there could be pockets of concentrations in which insurers with higher dependence on reinsurance could see greater impacts, which will take time to determine.”
According to catastrophe risk modeller CoreLogic, wind damage and storm surge are expected to drive the majority of the insured loss, with most of the damage occurring in Louisiana, and a slight contribution from damages in Mississippi and Alabama.
It also estimated these insured losses to be at up to $1.5 billion. Its figure includes damage to buildings, contents, and business interruption for residential, commercial, industrial, and agricultural property.
