EQECAT, Inc announced that preliminary estimates of cumulative insured losses from Hurricane Dean in two landfalls in Mexico would not “likely exceed $250 million.”
EQECAT indicated that “overall, Hurricane Dean insured losses will likely be approximately $2 billion, based on the final storm track. Earlier estimates were based on more adverse storm paths and intensities forecast by the weather services.”
The heaviest losses were in Jamaica, but Dean’s southern track kept the storm’s full fury (it was the third most severe hurricane ever recorded in the Atlantic-Caribbean basin) away from most other Caribbean islands. “Jamaica will also incur additional economic damage going forward due to loss of tourism while property and infrastructure damage is repaired,” EQECAT noted.
The loss estimates “include business interruption, as a result of the destruction of property; and demand surge, which occurs when the demand for products and services to repair damage significantly exceeds the regional supply. Thus, these products and services may have to be brought to the region quickly from distant points, resulting in additional costs for transportation, packaging and manufacture,” said the bulletin.
Source: EQECAT – www.EQECAT.com
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