Insurers could face $1b hit from Hurricane Ida

Insurers are poised for a nearly $1 billion hit from physical damage to offshore rigs and structures from Hurricane Ida, according to preliminary estimates from US property data and analytics company CoreLogic.

A spokesperson for Corelogic said the estimate did not include losses from production disruptions and could be revised over time.

The Bureau of Safety and Environmental Enforcement said that storm-locked oil volumes in the Gulf of Mexico rose to 1.7 million barrels per day offshore production, up 240,000 barrels from Wednesday.

According to natural resources consultancy Wood Mackenzie, “Ida has had a significant impact on Louisiana refinery operations and production in the Gulf of Mexico, disrupting a historic US crude oil supply chain.”

“The disruption in utility due to shortage of electricity, mobile data services and water could make Ida a long-term phenomenon when it comes to reporting of claims, payments,” the consultancy said.

Catastrophe modeling company Karen Clark & ​​Company on Wednesday estimated damage in the United States and the Caribbean at about $18 billion, while CoreLogic reported flood damages for properties in Louisiana, Mississippi and Alabama worth between $6 billion and $9 billion. Estimated damage, with additional wind losses. $8 billion to $12 billion.

Industry sources have said the total loss could be close to $30 billion after floods killed at least 44 people in the four northeastern states.

US Chief Claims Officer William Liebler said, “There has been significant water damage from the remnants of Hurricane Ida passing through the northeast … ” Dalal Marsh said.

Catastrophe modeling firm AIR Worldwide on Friday estimated insured damages from the storm, including wind and storm surge, in the range of $17 billion-$25 billion.