Hurricane Laura's Impact: Insured Losses and Future Preparedness

Early Estimates of Insured Losses

Hurricane Laura, which made landfall in late August 2020, has been estimated to have caused between $4 billion and $13 billion in insured damages. CoreLogic, a property information, analytics, and data provider, projected losses between $8 billion and $12 billion, primarily affecting southwest Louisiana and Texas. RMS, a catastrophe risk modeler, estimated the range to be between $9 billion and $13 billion, including wind, storm surge, inland flood, and National Flood Insurance Program (NFIP) losses.

Comparative Analysis with Other Hurricanes

When compared to other major hurricanes, Laura's insured losses fall within the lower to middle range. For instance, Hurricane Katrina in 2005 resulted in approximately $81 billion in insured losses, while Hurricane Harvey in 2017 caused around $30 billion. The relatively lower losses from Laura can be attributed to its path through less-populated areas and its smaller 'Rmax' – the distance from the center of the storm to the location of maximum winds.

Preparing for Future Storms

As climate change continues to exacerbate the frequency and intensity of hurricanes, it is crucial for communities and insurance companies to enhance their preparedness. Investing in robust infrastructure, improving building codes, and ensuring comprehensive insurance coverage can mitigate the financial impact of future storms. Additionally, the NFIP should be continuously reviewed and updated to better reflect current risks and provide adequate protection.