{"id":972,"date":"2025-11-07T07:30:10","date_gmt":"2025-11-07T08:30:10","guid":{"rendered":"http:\/\/fictionuncovered.com\/?p=972"},"modified":"2025-11-13T15:43:44","modified_gmt":"2025-11-13T15:43:44","slug":"moodys-rms-estimates-hurricane-melissa-insured-loss-between-3bn-and-5bn","status":"publish","type":"post","link":"http:\/\/fictionuncovered.com\/index.php\/2025\/11\/07\/moodys-rms-estimates-hurricane-melissa-insured-loss-between-3bn-and-5bn\/","title":{"rendered":"Moody\u2019s RMS estimates hurricane Melissa insured loss between $3bn and $5bn"},"content":{"rendered":"

This content is copyright to www.artemis.bm<\/a> and should not appear anywhere else, or an infringement has occurred.<\/p>\n

Moody\u2019s RMS Event Response has provided a best estimate for the insurance and reinsurance industry losses from recent hurricane Melissa of $3.5 billion, with a range of between $3 billion and $5 billion anticipated.
\n<\/span>
\n\"moodys-logo\"The catastrophe risk modelling arm of Moody\u2019s said that its estimate is based on both the privately insured hurricane wind and flood impacts in Jamaica, and includes post-event loss amplification and additional non-modeled sources of loss.<\/p>\n

\u201cThis estimate represents insured losses associated primarily with wind impacts in Jamaica, the island hardest hit by the Category 5 hurricane. Insured losses for other impacted Caribbean islands, including the Bahamas, Haiti, and the Turks and Caicos Islands, are expected to be minimal,\u201d Moody\u2019s explained.<\/p>\n

Moody\u2019s estimate encompasses losses from property damage and business interruption to residential, commercial, industrial, and automobile lines of business, takes into account the potential for post-event loss amplification (PLA), including potential super-cat impacts related to infrastructure damage to roads, power networks, etc., as well as non-modeled losses from extended business interruption and precipitation-induced flooding.<\/p>\n

Moody\u2019s also noted that it does not take into account payouts under sovereign disaster insurance programs, including the CCRIF and the World Bank supported IBRD Jamaica catastrophe bond.<\/p>\n

The estimate from Moody\u2019s RMS analysis and models can be compared to other insured loss estimates already announced.<\/p>\n

Cotality had said hurricane Melissa is estimated to have caused insured losses in a range from US $1 billion to US $2.5 billion in Jamaica<\/a>.<\/p>\n

Meanwhile, Verisk\u2019s Extreme Event Solutions division had said that insured industry losses to onshore property in Jamaica from Hurricane Melissa will likely range between $2.2 billion and $4.2 billion<\/a>.<\/p>\n

Karen Clark & Company (KCC) pegged its estimate for the insurance industry loss from recent major hurricane Melissa at US $2.4 billion<\/a>.<\/p>\n

So Moody\u2019s is on the higher side of the other early risk modeller estimates to come out, at this stage.<\/p>\n

Jeff Waters, Director \u2013 North Atlantic Hurricane Models, Moody\u2019s, said, \u201cHurricane Melissa was truly a generational event for Jamaica and will be the storm that defined the 2025 North Atlantic hurricane season. While the capital city of Kingston was largely spared from damaging winds, many other towns were devastated by a combination of catastrophic winds and widespread inland flooding. Being an island, repairs and recovery will inevitably go through significant supply chain challenges, even as several key ports on the island remain operational. For these reasons, we expect recovery efforts to take several months, if not years.\u201d<\/p>\n

Raj Vojjala, Managing Director, Modeling and Analytics, Moody\u2019s, added, \u201cIn collaboration with local (re)insurers, several field reconnaissance surveys highlighted a dichotomy in Jamaica\u2019s building stock between the insured and uninsured. Most insured buildings are well-built, traditionally designed for seismic risk with concrete or reinforced masonry structures, which are also resilient to high winds. In contrast, uninsured residential buildings largely exhibit less stringent build quality or enforcement of wind design provisions, due in part to a lack of major hurricane landfalls since Gilbert in 1988. As a result, as Melissa\u2019s catastrophic winds tracked across the island, immense damage was caused to several communities.\u201d<\/p>\n

Also read for more news on Jamaica\u2019s catastrophe bond:<\/strong><\/p>\n

\u2013\u00a0Hurricane Melissa crosses Jamaica cat bond parametric boxes at 892mb, 100% payout likely<\/a>.<\/p>\n

\u2013\u00a0Hurricane Melissa losses in Jamaica likely to fall to reinsurers, says AM Best. BMS suggests $5bn+<\/a>.<\/p>\n

\u2013\u00a0Melissa insured impacts in the billions. Jamaica cat bond full loss most likely: Twelve Securis<\/a>.<\/p>\n

\u2013\u00a0Jamaica\u2019s cat bond \u201cdoing what it was designed to do\u201d \u2013 Lefferdink, Aon Securities<\/a>.<\/p>\n

\u2013\u00a0Hurricane Melissa estimated single-digit billion insured loss. Cat bond payout likely: Aon<\/a>.<\/p>\n

\u2013\u00a0Jamaica cat bond marked near zero after Melissa landfall. Calculation process underway<\/a>.<\/p>\n

\u2013\u00a0World Bank says Jamaica catastrophe bond payout \u201clikely\u201d for hurricane Melissa<\/a><\/p>\n

\u2013 No adverse ILS market reaction expected from Melissa cat bond payout: Fitch<\/a><\/p>\n

Moody\u2019s RMS estimates hurricane Melissa insured loss between $3bn and $5bn<\/a> was published by: www.Artemis.bm<\/a>
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This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. Moody\u2019s RMS Event Response has provided a best estimate for the insurance and reinsurance industry losses from recent hurricane Melissa of $3.5 billion, with a range of between $3 billion and $5 billion anticipated. The catastrophe risk modelling […]<\/p>\n","protected":false},"author":1,"featured_media":974,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[],"_links":{"self":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/972"}],"collection":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/comments?post=972"}],"version-history":[{"count":2,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/972\/revisions"}],"predecessor-version":[{"id":975,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/posts\/972\/revisions\/975"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/media\/974"}],"wp:attachment":[{"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/media?parent=972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/categories?post=972"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/fictionuncovered.com\/index.php\/wp-json\/wp\/v2\/tags?post=972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}