It seems as if something is in the air…
As it goes in life, bad events tend to happen in lumps. Everything in the world seems to go along smoothly and then – BAM – negative news slaps you in the face over and over. I received an email from one of my favorite local charities that informed me of a truck sending supplies to Houston to help hurricane victims. This truck sent diapers, towels, pumps, and other badly need resources like gift cards to Walmart and Target directly to those in need. I was happy to help. I went to Costco and loaded up on diapers to donate and off they went. A small part to help but everything counts. Then I got the calls.
When returning calls at the office not one, not two, but THREE clients or friends informed me that they were getting a divorce or separated! OK, I thought, let’s turn on the news. Lo and behold – North Korea is acting up and threatening nuclear war. Then an earthquake in Mexico, and then another hurricane in Florida. Woke up in the morning and the stock market was down a full percentage point which was unusual in this low volatility environment. Then my wife and son both get sick one sent to the emergency room for diagnostics. (Thank heavens it was a minor issue, but it scared the crap out of our family.) What’s next? Do you ever feel like another shoe will drop and that more bad news is coming? I know I do. Anyhow, I wanted to share some interesting stats about hurricanes.
As flood waters recede in Texas, Hurricane Harvey is on track to be one of the costliest natural disasters in U.S. history. Not since Hurricane Katrina, which ravaged Louisiana in 2005, and Gustav & Ike in 2008, have insurance companies been levied with billions of dollars in settlement claims.
Fortunately, nearly nine years absent of a significant natural disaster has allowed insurance carriers nationwide to fortify reserves and issue new policies.
Moody’s estimates that property losses from Hurricane Harvey will total between $45 billion to $65 billion, while economic losses will add $6 billion to $10 billion, totaling $75 billion. Other insurance industry estimates run as high as $100 billion, including uninsured businesses and individuals.
Historically, rebuilding efforts following natural disasters such as hurricanes, has led to pockets of economic growth. The enormous cost of Katrina in 2005 led to hundreds of millions of dollars for rebuilding homes, roads, buildings, and re-establishing businesses.
Sources: NOAA, Dept of Commerce, Moody’s