Hurricane Beryl US insured loss estimated at $2.7bn by Karen Clark & Co

Hurricane Beryl is estimated to have caused insurance industry losses of $2.7 billion in the United States, losses of close to $510 million in the Caribbean, and $90 million in Mexico, according to catastrophe risk modelling specialists at Karen Clark & Co (KCC).

KCC is the first catastrophe risk modeller to release an estimate for the storm, which became the earliest Category 5 hurricane on record and the strongest July Atlantic hurricane on record, before battering parts of the Caribbean and Mexico, and later making landfall in Texas as a Category 1 storm.

According to KCC, Beryl generated accumulated cyclone energy (ACE) of over 35 (x 104 kt), which is more than 25% of the average season ACE, bringing this year’s Atlantic hurricane season ACE to a level that is typical of late August and early September.

The US insured loss estimate of $2.7 billion includes privately insured damage to residential, commercial, and industrial properties and automobiles, as well as business interruption. However, it excludes losses to boats, offshore properties, and NFIP losses.

The loss estimates for both the Caribbean and Mexico exclude automobiles and business interruption.

In the US, over 2.5 million homes lost power throughout Texas, with numerous reports of roof and structural damage, and downed trees falling on homes and cars throughout the impacted area. The storm surge from the event reached six feet in some areas, and KCC notes that many vehicles have been reported flooded due to the high waves and storm surge.

In the Caribbean, impacts from Beryl were felt across the Windward Islands, and nearly 95% of homes on Carriacou and Petite Martinique were either damaged or destroyed, reports KCC. St. Vincent and the Grenadines were also devastated, and while the storm did not make landfall in Jamaica, the eyewall skirted the southern coast of the island as a powerful Category 4 hurricane, causing damage or the destruction of many homes.

In Mexico, Beryl made landfall near Tulum on the Yucatan Peninsula as a strong Category 2 storm, and while local reports suggest that damage was limited, tens of thousands were without power following the storm.

This loss estimate from KCC follows announcements from the CCRIF SPC that Caribbean countries Jamaica and Grenada are set to receive payouts under their parametric policies following the impacts of Beryl.