HAMILTON, BERMUDA – Bermuda (re)insurers estimate that they will incur gross claim losses of US$6 billion as payments to United States (US) policyholders and cedants to cover the damaging effects of Hurricane Ida, which became the second most destructive hurricane to make landfall in Louisiana, behind Hurricane Katrina in 2005. This is according to commercial insurers market claims data1 collected by the Bermuda Monetary Authority (Authority or BMA) in November 2021. As of 30 September 2021, reinsurers had paid US$168 million in losses relating to Hurricane Ida.
Based on publicly available estimates from catastrophe risk modellers, (re)insurance losses resulting from Hurricane Ida are expected to total between US$20 billion and US$44 billion2. The overall industry loss estimate for Hurricane Ida includes wind and storm surge losses in the Gulf of Mexico as well as losses from inland flooding in the Gulf Coast states (Alabama, Florida, Louisiana and Mississippi), Ohio Valley, Mid-Atlantic, and Northeast regions of the US. Consequently, Bermuda (re)insurers may incur as much as 30% of the industry losses from Hurricane Ida.