Hurricane Ida Could Cost Insurers As Much As $30 Billion: Swiss Re

The insurance industry could face claims of as much as $30 billion from hurricane Ida, which caused extreme wind and flood damage across parts of the U.S. after making landfall in late August.

Source: Bloomberg | Published on October 6, 2021

A hurricane on earth viewed from space. This is a rendered image.

Insured losses from the storm, the second-most intense hurricane to hit the state of Louisiana, will probably range between $28 million and $30 million, the reinsurer said in a statement Tuesday. It estimated its own cost from claims related to the storm at about $750 million.

Ida made landfall on August 29, causing power outages and severe infrastructure damage particularly in Louisiana and constraining supply of crude oil and natural gas in a rapidly tightening energy market. For insurers, the cost from the storm adds to some $12 billion in expected claims from flooding in Europe earlier in the third quarter, according to Swiss Re.

The Zurich-based reinsurer also adjusted its own estimate for claims from the July floods, predicting losses of about $520 million.