Event: Superstorm Sandy, 2012
Location: New York, US
Economic cost: $19bn to New York.
Description: The storm made US landfall on 29 October 2012, coinciding with a full moon and a high tide. A Category 2 storm surge flooded streets, tunnels and subway lines throughout the metropolitan area. In Lower Manhattan the water level exceeded four metres.
Damage: By the time Sandy dissipated over Pennsylvania on 31 October, it had killed more than 70 people in the US. Although the most severe damage occurred in New York and New Jersey, it affected a total of 24 states. Power outages (many of which lasted several days) were reported in 15 states, hitting nearly 8.5 million customers and causing business interruption and associated claims.
Insight: Claims associated with Sandy reached $18.75bn. Sixty-five per cent of claims costs were commercial lines, 35% personal lines. Wind damage accounted for 80% of personal lines loss. Surge damage was 85% of commercial lines losses. Sandy was another reminder of how a sizeable event can impact multiple lines of business, with claims affecting property, marine, business interruption and fine art classes among others.
Insurance solutions: The Lloyd's market offers cover in relation to Wind storm. Examples of this include but are not limited to: Property catastrophe reinsurance, insurance linked securities (including collateralised reinsurance and catastrophe bonds), commercial property, home and contents, flood insurance, business interruption and contingent business interruption, event cancellation, travel insurance, marine and energy, professional indemnity, public liability and workers' compensation among other casualty products.
Image: Superstorm Sandy approaching the US East Coast on 28 October 2012 (Getty Images)
Sources: AIR Worldwide; RMS
