AIR Worldwide Estimates Insured Losses for Hurricane Zeta Will be Between USD 1.5 Billion to USD 3.5 Billion

Rhea-AI Summary

Hurricane Zeta, which made landfall on October 28, is estimated to cause insured losses between USD 1.5 billion to USD 3.5 billion, according to AIR Worldwide, a Verisk business. Zeta, a high-end Category 2 storm with sustained winds of 110 mph, ties the record for the number of named storms this season. The hurricane hit southeastern Louisiana, affecting areas from eastern Texas to the western Florida Panhandle. Despite impacts, levees protected New Orleans from storm surge. AIR's estimates cover onshore property, including residential and commercial losses.

Positive

• Estimated insured losses ranging from USD 1.5 billion to USD 3.5 billion may result in increased demand for catastrophe modeling services.
• Hurricane Zeta's landfall marks a significant event in a record-setting storm season, potentially enhancing AIR Worldwide's reputation and service utilization.

Negative

• The increased frequency of hurricanes could lead to higher operational costs and insurance payouts for the industry, impacting profitability.
• The devastating impact on insured properties may result in long-term financial strain within the insurance sector.

Boston, Nov. 02, 2020 (GLOBE NEWSWIRE) -- Catastrophe risk modeling firm AIR Worldwide estimates that industry insured losses to onshore property resulting from Hurricane Zeta’s winds and storm surge will range from USD 1.5 billion to USD 3.5 billion. AIR Worldwide is a Verisk (Nasdaq:VRSK) business.

Hurricane Zeta made landfall at 4 p.m. CDT on October 28 near Cocodrie, Louisiana, about 80 miles south of New Orleans. It then moved quickly northeastward and tracked directly over New Orleans before moving through Mississippi and Alabama, where it weakened to a tropical storm. Its remnants then continued across Georgia, the Carolinas, and Virginia on Thursday, October 28.

According to AIR, at landfall, Zeta was a high-end Category 2 storm with 1-minute sustained wind speeds of 110 mph—just 1 mph shy of a Category 3, which would have classified it as a major hurricane. Zeta was the 27th named storm of the season—tying the record for number of named storms in the Atlantic, set in 2005—and the 11th to make landfall in the United States, breaking the previous record for the number of U.S.- landfalling named storms set in 1916. As the fifth named storm to make landfall in Louisiana this season, it also broke the record for the number of named storms to make landfall in Louisiana in one season set in 2002.

Hurricane Zeta made landfall just three weeks after Hurricane Delta and about nine weeks after Hurricane Laura. While Laura and Delta made landfall just 12 miles apart, Zeta made landfall about 150 miles east of their landfall locations and west of where Sally made landfall on September 16. Considering all four of these hurricanes—Sally, Laura, Delta, and Zeta—the entire coastline from eastern Texas near the Louisiana border to the western Florida Panhandle has been impacted by hurricanes so far this season.

After landfall, Zeta moved through Louisiana and into Mississippi with gusts of up to 100 mph observed, and hurricane conditions impacted Mississippi and Alabama. By Thursday morning, Zeta had weakened to a tropical storm over central Alabama, although strong gusts continued to impact northeastern Alabama, northern Georgia, the Carolinas, and southeastern Virginia through Thursday as Zeta’s remnants trekked northeastward.

Hurricane Zeta’s storm surge inundated far into the bayous of southeastern Louisiana. Despite Zeta moving directly over New Orleans, the levees protected that city from storm surge. Inundation in Mississippi and Alabama was confined to coastal areas, with Mississippi’s coast experiencing the largest storm surge.

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.

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FAQ

What are the estimated insured losses from Hurricane Zeta as reported by Verisk?

The estimated insured losses from Hurricane Zeta range from USD 1.5 billion to USD 3.5 billion.

How did Hurricane Zeta impact Louisiana and surrounding states?

Hurricane Zeta made landfall in southeastern Louisiana and traveled northeast, affecting Mississippi, Alabama, and other states with high winds and storm surge.

What category was Hurricane Zeta when it made landfall?

Hurricane Zeta was classified as a high-end Category 2 storm with sustained winds of 110 mph at landfall.

What records did Hurricane Zeta set during the 2020 hurricane season?

Hurricane Zeta tied the record for the most named storms in the Atlantic and broke the record for the number of U.S. landfalling named storms in a season.