Dean Total Insured Loss Set At $2 Billion By Eqecat

Overall insured losses from Hurricane Dean's track through the Caribbean and Mexico are likely to total $2 billion, the modeling firm Eqecat Inc., based in Oakland, Calif., said yesterday.

The damage done in two landfalls in Mexico will amount to cumulative insured losses and will not likely exceed $250 million, the firm said.

Earlier higher estimates, the modeling firm said, were based on more adverse storm paths and intensities forecast by the weather services. While Jamaica was significantly impacted, the storm missed Martinique, St. Lucia, the Caymans, densely populated centers on the Yucatan Peninsula and Mexico oil production areas.

The majority of the loss occurred in Jamaica, which sustained significant property damage. Jamaica will also incur additional economic damage going forward due to loss of tourism while property and infrastructure damage is repaired, Eqecat said.

Hurricane Dean's intensity, according to Eqecate, was the third most severe recorded in the Atlantic-Caribbean basin.

Eqecat's insured loss estimates include business interruption as a result of the destruction of property, and demand surge, which occurs when the demand for products and services to repair damage significantly exceeds the regional supply.

Excluded from Eqecat's insured loss, estimates are losses related to flooding, private and commercial automobiles and similar vehicles, and marine assets, such as boats.