AIR Worldwide Estimates Insured Losses for Hurricane Sally Will be Between USD 1 Billion and USD 3 Billion

Rhea-AI Summary

On September 21, 2020, AIR Worldwide estimated that Hurricane Sally will result in insured losses ranging from USD 1 billion to USD 3 billion, primarily due to wind damage. The hurricane made landfall on September 16 near Gulf Shores, Alabama, with maximum winds of 105 mph. Significant rainfall caused flooding, with downtown Pensacola receiving 24.8 inches. The storm affected coastal areas in Alabama and Florida, resulting in minor roof damages and power outages affecting nearly half a million customers. AIR's estimates include residential, commercial, and industrial losses.

Positive

• Estimated insured losses indicate significant business for the insurance sector, which may benefit Verisk.
• AIR Worldwide's risk modeling expertise positions the company as a leader in catastrophe risk analysis.

Negative

• The forecasted losses between USD 1 billion to USD 3 billion suggest potential financial strain on insurers.
• The extensive damage could lead to increased claims and operational challenges for insurance providers.

Boston, Sept. 21, 2020 (GLOBE NEWSWIRE) -- Catastrophe risk modeling firm AIR Worldwide estimates that industry insured losses to onshore property resulting from Hurricane Sally’s winds, storm surge, and inland flood will range from USD 1 billion to USD 3 billion, with wind representing the majority of the losses. AIR Worldwide is a Verisk (Nasdaq:VRSK) business.

After meandering across the Gulf, Sally made a late shift eastward and rapidly intensified to a Category 2 hurricane before making landfall at 4:45 a.m. CDT on September 16 near Gulf Shores, Alabama, just west of the Florida border, with maximum sustained winds of 105 mph (165 km/h) and a minimum central pressure of 965 mb. Sally quickly diminished after landfall as it crept northeast at around 3 mph, bringing wind gusts over 100 mph, storm surge of around 6-7 feet above NAVD88 in coastal communities of Baldwin County, Alabama, and Escambia County, Florida (including Pensacola), and rainfall of up to 30 inches in Orange Beach, Alabama, and 24.8 inches in downtown Pensacola, Florida. Heavy rainfall was largely confined to a relatively smaller area covering the Florida Panhandle west of Tallahassee and southeastern Alabama. 

According to AIR, although wind speeds diminished rapidly after landfall, Sally buffeted cities and towns for hours as it moved north-northeast across Alabama at speeds as slow as 2 mph. Coastal areas between Mobile, Alabama, and Pensacola, Florida, lingered in the northern eyewall for hours. Tropical storm–force winds continued through the afternoon of the 16^th across southern Alabama and the western Florida Panhandle.

Along its track, Sally caused mostly minor roof damage, broken windows, downed trees, toppled church steeples and appurtenant structures such as gas station canopies, and some isolated major structural failures, and damaged infrastructure in Alabama and Florida. At its height, power outage extended to nearly half a million customers—most of them in Alabama and Florida.

Areas of notable storm surge inundation include Orange Beach and Dauphin Island, Alabama, and other coastal communities of Baldwin County. Areas of notable inland flooding include downtown Pensacola, which received 24.8 inches of rain from Sally. Flooding in coastal communities in Baldwin County and the Florida Panhandle was largely caused by hurricane-induced precipitation. 

Included in AIR’s estimates are losses to onshore residential, commercial, and industrial properties and automobiles for their building, contents, and time element coverage.

About AIR Worldwide
AIR Worldwide (AIR) provides risk modeling solutions that make individuals, businesses, and society more resilient to extreme events. In 1987, AIR Worldwide founded the catastrophe modeling industry and today models the risk from natural catastrophes, terrorism, pandemics, casualty catastrophes, and cyber incidents. Insurance, reinsurance, financial, corporate, and government clients rely on AIR’s advanced science, software, and consulting services for catastrophe risk management, insurance-linked securities, longevity modeling, site-specific engineering analyses, and agricultural risk management. AIR Worldwide, a Verisk (Nasdaq:VRSK) business, is headquartered in Boston, with additional offices in North America, Europe, and Asia. For more information, please visit www.air-worldwide.com. For more information about Verisk, a leading data analytics provider serving customers in insurance, energy and specialized markets, and financial services, please visit www.verisk.com.

###

For more information, contact:
Kevin Long
AIR Worldwide

FAQ

What are the estimated insured losses from Hurricane Sally for Verisk (VRSK)?

AIR Worldwide estimates that Hurricane Sally will result in insured losses between USD 1 billion and USD 3 billion.

When did Hurricane Sally make landfall?

Hurricane Sally made landfall on September 16, 2020.

What was the maximum wind speed of Hurricane Sally?

The maximum sustained wind speed of Hurricane Sally was 105 mph.

How much rainfall did Pensacola receive from Hurricane Sally?

Pensacola received 24.8 inches of rainfall due to Hurricane Sally.

What areas were most affected by Hurricane Sally?

Coastal areas in Alabama and Florida, particularly Orange Beach and Dauphin Island, were significantly affected by Hurricane Sally.