Hurricane Ida Could Cost Insurers as Much as $30 Billion, Swiss Re Says

(Bloomberg) --

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.

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.

Read more about hurricane Ida’s impact:

Ida’s Oil Destruction Lingers With 30 Million Barrels Gone (1)

Natural Gas Soars Most Since Last Winter on U.S. Scarcity Fears

No Hurricane Has Hit U.S. Energy Markets Quite Like Ida Has (2)

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

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