Verisk Analytics estimates industry insured losses from Hurricane Otis

Verisk estimates industry insured losses to onshore property for Hurricane Otis will likely fall from MXN 50 billion to MXN 110 billion, or ~USD 3 billion to 6 billion). The industry loss range includes insured estimates of wind and precipitation-induced flood across Otis’s track. Most of the modeled loss is attributable to wind. Hazard and Damage Observations: Few wind measuring stations survived the storm and provided reliable data on wind speeds. One station near Acapulco that endured the storm recorded a peak wind gust of 135 mph. Observations from aircraft as well as satellite data were used to help constrain the modeled windfield. Maximum rainfall amounts along the coast generally fell between 8 and 12 inches, with a widespread 2+ inches across much of the state of Guerrero. Damage to coastal and inland exposures in and around Acapulco was catastrophic. Insurance take up for residential risks is quite low in Mexico, though a bit higher for commercial risks. However, it is likely there is higher residential insurance take up in Acapulco, particularly in direct coastal areas, than across the rest of the state of Guerrero. Included in the industry insured loss estimate are losses to onshore residential, commercial and industrial properties and automobiles for their building, contents and time element coverage from wind and precipitation induced flood.