Hurricane Beryl insurable Jamaica, Cayman, Mexico losses below $1.7bn: CoreLogic
According to risk modelling and catastrophe data firm CoreLogic, the insurable losses from hurricane Beryl’s impacts in the Caribbean and Mexico are expected to total no more than $1.7 billion.
CoreLogic said that it estimates total insurable losses across Jamaica and the Cayman Islands will be between $400 million and $700 million, while estimated insurable losses for damages across Mexico’s Yucatan Peninsula will also be less than $1 billion.
The company noted that these estimated losses include wind-only damage to residential, commercial, industrial, and agricultural properties, including damage to contents and business interruption.
CoreLogic’s definition of insurable losses covers damage to all modeled exposure types before the application of any insurance terms (such as deductibles or limits), but does not include losses to any regional insurance programs.
As we’d reported previously, there are expected to be some losses to the CCRIF SPC’s parametric insurance arrangements because of Beryl.
“While it’s unfortunate that a part of Jamaica experienced the devastating winds of Hurricane Beryl, it is lucky the storm stayed just far enough south of Kingston and merely brushed against Jamaica, its strong winds avoiding the most populated areas,” commented Jon Schneyer, CoreLogic’s director of catastrophe response. “A more northward shift could have caused a stronger storm surge and wind event in the more developed areas of Kingston, like what happened in 1988 with Hurricane Gilbert.”
Commenting on the records Beryl set, the extraordinary early season warmth of the seas in the main development region and Caribbean were noted.
“This is the sort of behavior we would expect to see in late August or early September during the peak of hurricane season,” added CoreLogic’s Chief Scientist Dr. Howard Botts. “To see a major tropical cyclone east of the Caribbean in late June is almost unheard of. A Category 5 hurricane in early July has never been recorded,” continued Botts. “Is this a new normal? Possibly, and it shows that pre-season outlooks are likely correct, and this will be an incredibly active hurricane season.”
Aon’s Impact Forecasting team also said late last week, “Given the storm’s intensity and reported damage thus far across the Caribbean, which includes significant infrastructural, structural, and agricultural losses, Beryl may drive total economic losses into the hundreds of millions USD. While insured losses are anticipated to be significantly lower, this largely depends on which areas will be impacted next.”
