Catastrophe risk modeller Karen Clark & Company (KCC) has provided a preliminary total loss estimate of $7 billion for the impact of Hurricane Dorian in the Bahamas.
The estimate includes both insured and uninsured losses to building, contents, and business interruption exposures for commercial, residential, and industrial projects, and excludes infrastructure and auto losses.
The Bahamas received a direct hit from Dorian and islands have been devastated, with huge property damage reported. The storm made landfall as a strong Category 5 storm and becomes the fourth of this strength to hit the Bahamas since 1900, and the first with winds of 185mph.
As well as strong winds, Dorian resulted in significant storm surge, stalling over the Bahamas as a Cat 5 storm for more than 24 hours.
Re/insurance market losses of up to $1.3 billion have been experienced with previous strong hurricanes that hit Abaco and Grand Bahama islands.
“Dorian will go down in history as the worst catastrophe in this region not only due to the highest recorded wind speed in the North Atlantic but also because the storm stalled over Abaco and Grand Bahama Island for over 24 hours. The impacts of Hurricane Dorian on the lives of the people in its path will be felt for many years to come,” said KCC.
The latest forecasts show that Dorian has intensified again over the warm waters offshore of the southeastern US, reaching major Category 3 status once again, with sustained winds of 115 mph and much higher gusts.