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Hurricane Ian will cost the economy billions, analysts say

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According to expert estimates, the Hurricane Ian could cost insurers up to $47 billion and will affect the growth of USA.

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The specialized consultant CoreLogic pointed out that wind-related losses on residential and commercial properties will reach an estimated $22 to $32 billion for insurers, while flood losses could amount to US$6 to 15 billion.

“This is the costliest storm in Florida since Hurricane Andrew made landfall in 1992. A record number of homes and properties were lost to the intense and destructive characteristics of Hurricane Ian”CoreLogic said in a statement.

For its part, the rating agency Fitch assesses insured losses in a range of $25 billion to $40 billion in Florida, an amount that could rise based on Ian’s impact in states further north.

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Fitch noted that many insurance groups dropped their coverage in Florida, a move that led to the bankruptcy of several small companies in the sector. Also, the projections do not consider properties that do not have flood insurance, which are the vast majority in Florida.

According to data from the consulting firm Milliman, only 18.5% of the houses in the counties under evacuation order have insurance with the public body responsible for providing this coverage (National Flood Insurance Program).

In addition, with power outages, flight cancellations and damage to agricultural production, Ian will also significantly disrupt the economic activity of the State for at least 10 days.

Meanwhile, the impact on US GDP should be 0.3 percentage points, estimated Gregory Daco, an economist at EY-Parthenon.

With information from the AFP Agency.

Source: Gestion

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