Insured losses from Katrina could exceed payouts that followed Hurricane Andrew of August 1992, which caused 21 billion dollars in damages in today's money, they said.

AIR Worldwide Corp., which evaluates catastrophe risks for companies, said Katrina could cost the insurance industry between 12 billion and 26 billion dollars.

Katrina made landfall Monday morning with maximum sustained winds reaching 145 miles (232 kilometres) per hour, noted Jayanta Guin, AIR's vice president of research and modelling.

"Once wind speeds exceed approximately 110 mph (177 kilometers), damage increases exponentially," Guin said in a statement.

"While much of the damage from lower-intensity hurricanes is limited to the roof covering, we expect structural damage and even catastrophic building damage from Katrina," he said.

"Building standards in the Gulf (of Mexico) coast region are not as stringent as other hurricane-prone regions such as southern Florida. This combination is likely to result in increased wind damage to properties."

Robert Hartwig, chief economist for the Insurance Information Institute, said there was an outside chance that Katrina could top the damage caused by Andrew.

"There are estimates out there ranging from 12 to 25 billion," he told AFP.

"What we're looking at is certainly one of the top two or three most expensive storms in history."

Insurance customers should get used to higher premiums for decades to come because of intensified hurricane activity, Hartwig added.

Premiums had already risen for residents on the Gulf and the southeast Atlantic coasts after four storms last year produced about 23 billion dollars in combined losses, he said.

"But it's also because meteorologists around the world say we're on the leading edge of a several-decade period when hurricanes are likely to become more frequent and more intense," he added.

Hurricane activity fluctuates around a 30-to-40-year cycle independent of whatever impact global warming might be having on weather patterns, Hartwig said.

"And beginning a few years back, we seem to have entered into one of the more severe parts of the cycle. It's likely to last several decades, certainly into the 2020s and maybe into the 2030s," he said.

The Insurance Information Institute gave the following table for insurance losses from the 10 most damaging hurricanes in recent US history, using 2004 values for the dollar amounts:

   Hurricane   Date              Losses


1. Andrew      August 1992       20.9 billion dollars
2. Charley     August 2004       7.5 billion
3. Ivan        September 2004    7.1 billion
4. Hugo        September 1989    6.4 billion
5. Frances     September 2004    4.6 billion
6. Jeanne      September 2004    3.7 billion
7. Georges     September 1998    3.4 billion
8. Opal        October 1995      2.6 billion
9. Floyd       September 1999    2.2 billion
10. Iniki      September 1992    2.2 billion

Community
Email This Article
Comment On This Article

Related Links
SpaceDaily
Search SpaceDaily
Subscribe To SpaceDaily Express
Bringing Order To A World Of Disasters
When the Earth Quakes
A world of storm and tempest

Memory Foam Mattress Review

SPACE MEDIA NETWORK PROMOTIONS Solar Energy Solutions Tempur-Pedic Mattress Comparison ... Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News