As the emergency services and homeowners work to pump out the water and clear away the rubble and debris, a clearer picture of the damage wrought by Hurricane Sandy is emerging.
We won’t know the bill for Hurricane Sandy until businesses are back up and running and life gets back to normal in North East, but current estimates from modeling firms are that the insured cost is in the range of $10bn – $20bn and the economic cost is in the range of $20bn – $50bn. In an interview with CNBC this morning our CEO and Chairman Joe Plumeri explained that the costs could go upward from there. The big unknown is the business interruption claims, which take time to materialize.
Despite the existence of government flood schemes, Joe expects the (re)insurance industry to absorb most of the cost of this catastrophe. The numbers are big, but the industry is well capitalised and prepared to handle this. At the end of the day this is our job – helping people and businesses rebuild when disaster strikes.
You can watch the full interview here: