US: The 2004 hurricane season is expected to be costly for insurers, with estimates of $8 billion of losses from just one of the storms that have hit the US this year.
The estimate by risk management experts Aon does not include the impact of Hurricane Ivan, which was expected to hit Cuba last night after rampaging through Jamaica at the weekend before entering the Gulf of Mexico tomorrow.
Mr Nicholas Bollons, a catastrophe analyst at Aon, estimates that Hurricane Charley, which hit Florida in August, will lead to $5-$8 billion of losses alone for insurers. About three million people were evacuated to avoid Charley but 25 lost their lives.
Mr Bollons had expected 2004 to be worse than average because the National Oceanic and Atmospheric Administration had forecast up to 15 tropical storms with up to eight hurricanes, two to four of which would be severe.
On average there are five to six hurricanes a year.
Aon has kept track of all the disasters that have taken place to the end of August and identified more than 8,000 fatalities.
Most of the analysis for August, however, focuses on hurricanes and finds that as the season is not due to end until November the price could be high for insurers.
Together, though, the hurricanes are not thought likely to surpass the $30 billion of damage inflicted by Hurricane Andrew in 1992. - (Guardian Service)