Reinsurance News

2020’s Laura, Delta and Zeta industry cost reaches $10.6bn: LDI

8th November 2021 - Author: Charlie Wood

The cost of the 2020 hurricanes Laura, Delta and Zeta in Louisiana have inflicted insurers with $10.6 billion in losses and reserves, according to the latest data from the Louisiana Department of Insurance (LDI).

This figure has increased from the previous $10 billion estimate released in August.

Policyholders are reported to have filed 323,727 claims of all types from the three storms through the third quarter of this year.

Of those, 218,615 claims, or 68%, were closed with payment as of Sept. 30, resulting in $8.6 billion of payments for damage caused by the three hurricanes. Insurers have reserved an additional $2 billion to pay on claims resulting from those storms.

“Residents of our state suffered a devastating blow from the 2020 hurricanes, as these figures attest,” Insurance Commissioner Jim Donelon said.

“With labor and materials prices rising because of the labor shortages and supply chain disruptions during and after the pandemic, I encourage all policyholders to continue filing supplemental claims if they discover that the cost to rebuild is more expensive than what they have been paid.”

The LDI also noted how 2020 was the most active storm season ever in Louisiana, with three hurricanes compounded by tropical storms Cristobal and Marco.

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