Data analytics and technology specialist Verisk has provided an estimate of insurance industry losses related to the impacts of Hurricane Otis in Mexico, saying it estimates the total will be between 3 and 6 billion dollars.
Earlier today we reported that AM Best previously said it estimated the insurance market loss due to Hurricane Otis would be between US$1.8 billion and US$6.5 billion.so Verisk’s estimate reduces this figure somewhat.
Verisk’s estimate is based on estimates of wind- and precipitation-driven flooding in the path of Hurricane Otis, the majority of modeled losses of which are attributable to wind, the company said.
The industry insured loss estimate includes losses incurred by land-based residential, commercial and industrial properties and automobiles for coverage of their buildings, contents and temporal elements due to flooding caused by wind and precipitation , the company further explained.
However, Verisk’s industrial loss estimate from Hurricane Otis does not include losses related to sovereign or government insurance protections, losses from coastal storm surge, inland shipping, cargo and hull losses. ocean maritime networks, pleasure boats/yachts or infrastructure.
Verisk commented, “The Acapulco coastline contains many larger apartments and condominiums as well as hotels. Many of them had the majority of their windows blown out by Otis’ devastating winds. Roof damage was also noted on many buildings close to the coast. Small commercial and residential buildings in Acapulco also suffered significant damage, with wall coverings torn off, roofs torn off and debris scattered. Significant damage was also observed north and west of Acapulco. In Coyuca de Benitez, Guerrero, minor damage was observed to a hospital as well as significant damage to residential structures.
“The damage caused to the coastal and inland areas of Acapulco and its surrounding areas has been catastrophic.
“Insurance take-up for residential risks is quite low in Mexico, although it is somewhat higher for commercial risks. However, it is likely that the use of residential insurance is higher in Acapulco, especially in direct coastal areas, than in the rest of the state of Guerrero.