Despite weakening just before making landfall in Louisiana, Hurricane Gustav will still cost the insurance industry billions in property/casualty payouts.
Gustav began powering its way toward the Gulf Coast late last week. At one point, the storm reached Category 4-strength, meaning wind speeds were measured between 131 and 155 mph. During this period, it caused offshore damage to oil platforms and wells, including production interruptions caused by wind and waves that would likely range between $1 billion to $3 billion, according to Risk Management Services' (RMS) estimates.
Another risk modeling firm, AIR Worldwide Corporation, estimated offshore losses to be between $1.8 billion and $4.4 billion, but said that these losses could top $10 billion because of wind and wave damage to oil platforms and direct and indirect revenue losses stemming from reductions in oil and gas production.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
