September 18, 2019 09:30
Satellite Image of hurricane Dorian | Photo: NASA
Hurricane Dorian is expected to cost less than expected in terms of insured damages. While it provided for a bill of 25 to 40 billion us dollars (G$ US), the firm Risk Management Solutions (RMS), which models and analyzes the risks of disasters, is less alarmist.
It is estimated that the insured losses should rather be between 4 and 8.5 G US$ to the Caribbean, the United States and Canada. Our country being the least to complain.
Canada : the area least affected
Dorian has reached the atlantic Canada while he was a post-tropical storm. There, winds have reportedly caused at least 500 million united states dollars (US$ M) in insured losses, according to RMS. For its part, the BAC considers that the insured damage caused by the passage of Dorian in Canada could amount to several million dollars.
Whereas Nova Scotia was the canadian province with the most mauled by Dorian, Quebec has also had its fair share of damage. Because of this, the provincial government has announced that the six municipalities will be able to receive financial aid from the government. Are eligible for the general Program of compensation and financial assistance to the municipalities of Blanc-Sablon, Chandler, Côte-Nord-du-Golfe-du-Saint-Laurent, Gros-Mécatina, Big-Island and Îles-de-la-Madeleine.
United states : less worse than expected
The insured damage caused by the wind and the storm surge could reach between$ 500 Million and US$ 1.5 billion for the United States, where the “consequences could have been much worse,” said RMS. This estimate takes into account material damage and business interruption affecting the business sectors residential, commercial, industrial and automotive.
This estimate includes losses incurred by the National Flood Insurance Program (NFIP), the u.s. national program of flood insurance. However, the RMS states that the insured losses due to floods caused by precipitation are not expected to contribute significantly to the total losses insured in the United States.
Caribbean : 75 % of the insured damage
RMS estimates that the insured damage oscilleront between 3.5 and US$ 6.5 billion for the whole of the Caribbean. However, RMS estimates that nearly all of the insured losses in the Caribbean from the Bahamas, hard hit by Dorian, which has stagnated the country for more than 36 hours while it was still a hurricane category 5. The sector focus and 75 % of all insured damages a result of the passage of Dorian in the Atlantic.
RMS states that the insured losses will be a small part of the total economic losses, particularly in the Caribbean, where the rate of insurance is lower than that of the United States.