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Insurance Cost of Hurricane Sandy

Insurance market Lloyd’s of London estimated pre-tax claims for damages caused by superstorm Sandy to be between 2 billion and 2.5 billion U.S. dollars.

Lloyd’s said in a statement on Wednesday this estimate is consistent with the entire insurance industry losses of between 20 billion and 25 billion U.S. dollars.

Lloyd’s chief executive Richard Ward said:"Claims from this storm could still evolve over time, the market’s total exposure is well within the worst case scenarios we model and prepare for."

Storm Sandy killed at leat 110 people and caused widespread power failure when it hit northeastern United States in late October this year.

Insurers and analysts have said the size of the affected region, which includes New York City and other densely populated and industrialized areas, makes the final insurance bill difficult to calculate.

It is the second-costly storm for the insurance sector after Hurricane Katrina in 2005 under estimates to date.

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