Fresh estimates from insurance industry analysts have put the damage caused by hurricane Katrina in the southern US states to insured properties and items at a top estimate of $60 billion.
The new valuation comes as investigators continue to gain greater assess to the affected areas, particularly down-town New Orleans which has until recently been virtually inaccessible. Previous estimates put the top valuation of damage at $40 billion.
New Orleans is still reported to be 60% underwater but following greater evaluation of the effects of one of the most devastating natural disasters to ever hit a major US city, assessors increased their estimates by 50% from a range of $35 to $40 billion to $50 to $60 billion. Furthermore, predictions of total losses, including uninsured losses, have been increased to $125 billion.
Individual companies have also had to review their early estimates of personal exposure. Swiss Re, one of the largest reinsurance companies in the world, has doubled its initial evaluation to $1.2 billion. Meanwhile, Munich Re has admitted that its original evaluation of E400 million is too low. In a more confident mood, Australia’s biggest international insurer, QBE, said its losses would not reach A$125 million.