Insured losses from Hurricane Melissa’s impact on Jamaica are projected to reach between $2.2 billion and $4.2 billion, according to estimates released by Verisk Analytics Inc.
The Category 5 storm made landfall in southwestern Jamaica last week, marking the strongest hurricane ever to directly hit the island and the first major storm since 1988. The hurricane caused widespread destruction, including extensive structural damage in Montego Bay, one of Jamaica’s main tourist destinations.
Verisk’s Extreme Event Solutions unit reported that the majority of modeled losses stem from wind damage, while flooding from heavy rainfall also played a significant role in the overall impact.
The company noted that extreme weather events — intensified by climate change — have created growing financial challenges across multiple sectors, as frequent and severe natural disasters drive up recovery costs. Rising claims have placed pressure on underwriting results and led to continued reassessment of risk models and pricing strategies.
Based in New Jersey, Verisk provides catastrophe modeling and predictive analytics services, primarily to the property and casualty insurance sector, to assist in evaluating risk and setting policy rates.
Source: Reuters / Verisk Analytics Inc.
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