Insurers May Take $4.3 Billion Hit From Hurricane Zeta in US

Insurers May Take $4.3 Billion Hit From Hurricane Zeta in US
Overturned trailers sit along LA-46 after Hurricane Zeta 2020 in Reggio, La., on Oct. 29, 2020. (Sandy Huffaker/Getty Images)

Insurers are bracing for a hit of about $4.3 billion from Hurricane Zeta in the United States, catastrophe modeling company Karen Clark & Co (KCC) stated on Nov. 2.

At least six people were killed in the southeast of the United States and more than 2 million people were without power on Oct. 29 after Hurricane Zeta slammed into the Gulf Coast and moved northeast.

Overall, nine U.S. states were hit by Hurricane Zeta, with the highest losses in Louisiana, Mississippi, and Georgia, KCC stated, adding that 2020 had been a record year for named storms that made a landfall.

The loss forecast includes damage to residential, commercial, and industrial properties as well as automobiles, KCC stated.

Karen Clark also estimated an $80 million hit to insurers in Mexico from the hurricane.

Separately, catastrophe risk modeling firm AIR Worldwide estimated insured losses from the hurricane in the range of $1.5 billion to $3.5 billion.

By Noor Zainab Hussain