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Insured Michael losses may hit $10B, AIR Worldwide says

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Insured Michael losses may hit $10B, AIR Worldwide says

Industry insured losses from Hurricane Michael's winds and storm surge will come in at between $6 billion and $10 billion, AIR Worldwide estimated.

Michael made landfall near Mexico Beach, Fla., on Oct. 10. The catastrophe risk modeling company said Mexico Beach "suffered the brunt of Michael's fury" and was "virtually obliterated" by a catastrophic storm surge.

Panama City and Panama City Beach suffered heavy damage, while felled trees were reported in the state capital of Tallahassee, although these caused relatively little damage. Likewise, "little significant structural damage" was reported in the state of Georgia, with the majority of what did occur taking place in the southwestern city of Albany.

AIR Worldwide's estimates include insured property damage and additional living expenses. For the automobile line of business, the company expects insurers to pay for storm surge damage.

The estimates do not include precipitation-induced flooding; losses paid out by the National Flood Insurance Program; losses to inland marine, marine cargo and hull and pleasure boats; and losses for U.S. offshore assets and non-U.S. property.

AIR Worldwide is a Verisk Analytics Inc. business.