Cyclone in India to Cost Insurers Up to $400 MillionLaura Davison
Cyclone Hudhud, which hit India’s east coast last week, probably cost insurers $100 million to $400 million, modeling firm AIR Worldwide said.
The storm damaged transportation infrastructure, power supply systems and more than 40,000 homes, the Boston-based modeler said today in a statement. Less than a third of potential commercial and residential customers were insured against the losses, according to the statement.
“The majority of the insured damage caused by Hudhud is concentrated in Vizag, the largest city in the Indian state of Andhra Pradesh and the third-largest city on the east coast of India with a population of 2 million,” Praveen Sandri, managing director and senior vice president at AIR Worldwide India, said in the statement.
AIR Worldwide said efforts to estimate the damage were complicated by discrepancies in the measurements of storm intensity from various agencies. The risk modeling firm is owned by Jersey City, New Jersey-based Verisk Analytics Inc.