At least 20 people are dead and roughly 13,000 homes have been destroyed after Hurricane Dorian devastated the Bahamas' Grand Bahama and Abaco Islands this Labor Day weekend. The International Red Cross says the estimated 13,000 homes wrecked by Dorian make up 45% of the total homes on both islands. Thousands are without water and power, and officials say it will be weeks or months before power can be restored to the affected islands. Now, days after hitting the Bahamas' northern islands with the worst storm in the country's recorded history, Hurricane Dorian isn't done wreaking havoc just yet. As of 8 p.m. Wednesday, the now Category 2 Dorian was traveling north toward the Carolinas located 90 miles offshore. With maximum sustained winds of 110 mph, Dorian is bringing tropical storm-force winds and rains to the U.S.'s southeast coast, particularly in South Carolina. Forecasters say Dorian is expected to make landfall somewhere along South Carolina's coast on Thursday or Friday and could bring serious storm surge to affected communities as the storm's current path parallels the coastline. |

Early loss estimates, economic predictions released

Despite Dorian's continued activity in the Atlantic, UBS has released an early loss estimate for the insurance industry. UBS estimated Dorian will cost insurers up to $25 billion, and estimate its total loss cost will price out at $40 billion maximum. A report released by Karen Clark & Company (KCC) on Thursday analyzes the impacts of Hurricane Dorian on the Bahamas and puts forth a preliminary estimate of total insured and uninsured losses in the Bahamas at $7 billion. This estimate includes building, contents, and business interruption exposures for commercial, residential and industrial properties. The estimate does not include infrastructure or auto losses. At its peak, Dorian hit the Bahamas packing wind speeds of 220 mph, creating a storm surge of up to 20 feet throughout two days of sustained destruction in the country's northern islands. RMS reports Dorian experienced an "unprecedented period of rapid intensification" from August 31 to September 1, increasing its sustained wind speeds from 150 mph to 185 mph in one day. According to RMS, no other hurricane on record has ever intensified as rapidly from such a high initial wind speed. Aerial images of the affected islands depict the catastrophic property damage inflicted by Dorian, and with estimates of 13,000 homes destroyed, the cost to residents, local economies and the insurance industry is certain to be high. |

Economic impact for the Bahamas

Surveying Dorian's economic impact, Moody's Investor Service published a report on the Cat 5 hurricane, emphasizing the consequences for an under-insured population and what both victims and insurers can expect to see in the claims-handling process. In the report, Moody's asserts that the economic and humanitarian losses in the Bahamas likely will fall heavily on lower-income populations that are under or uninsured. Even among those who are insured, extensive flood damage likely will hamper the claims-adjusting resources, slowing the claims process, Moody's says. Additionally, a spike in demand for materials and labor will likely raise rebuilding costs, thereby increasing losses for insurers. Despite this, and while information is limited, the Moody's report concludes that local insurers in the Bahamas have significant reinsurance programs that will help absorb losses from Hurricane Dorian. |

South Carolina prepares for Dorian's arrival

As of Wednesday night, South Carolina's coastal communities were experiencing high winds and rain as Dorian sat 90 miles offshore, and local officials issued warnings about the storm's potential. The Beaufort County Sheriff's Office reported bridge and causeways closures Wednesday as the high winds made it "no longer safe to drive onto and over" these roadways. The Charleston International Airport is closed through Friday, and some reports indicate the Charleston area could experience the brunt of Dorian's force. Ahead of Dorian's arrival, the South Carolina Department of Insurance released information for residents and property owners on disaster preparation tips, storm surge forecasts, and resources on claims handling to help mitigate losses and aid in ensuring the safety of residents. Full details can be found on the Department's Facebook page. For coverage on hurricane planning and readiness, visit our special report page "2019 Catastrophe Preparation and Recovery." Related: Hurricane Dorian lashes Florida and puts Carolinas in harm's way