September 7th, 2010

Update: Hurricane Earl

Posted at 9:51 AM ET

earl-11-small2Earl made landfall near Western Head in Nova Scotia, Canada, on September 4 as a tropical storm with sustained winds of around 70 mph (110 kmph). Reports said Earl’s strong winds and heavy rain downed trees, flooded roads and cut power to 210,000 homes and businesses in the Canadian province. One man was reportedly killed in the Halifax region after he swam into rough waters to secure a boat that had come loose from its mooring. Earl continued to track in a northeasterly direction after coming ashore in Nova Scotia, moving into in the Gulf of St Lawrence off Newfoundland. Earl had lost much of its strength by the time it reached Canada, after tracking up the U.S. eastern seaboard as a strong hurricane.

Earl caused widespread disruption as it skirted the U.S. East Coast, bringing strong winds and heavy rain to some areas. The National Hurricane Center (NHC) said Earl passed about 85 miles (135 kilometers) east of Cape Hatteras in North Carolina on September 3 as a category 2 hurricane, packing sustained winds of around 105 mph (165 kmph). However, Earl’s strongest winds were located to the east of the storm’s eye, keeping the most damaging winds away from the onshore property exposure located to the west. The NHC said no part of North Carolina was exposed to hurricane force-winds. Although there were isolated reports of broken windows, flooding and road closures in coastal areas of North Carolina and Virginia, no major damage was reported. Consequently, EQECAT expects potential losses in both states to be less than USD100 million. AIR Worldwide said it did not expect “significant insured losses” in North Carolina and Virginia.

earl-11-big

Hazard data illustrated in the CAT-i map was taken from i-aXs®, Guy Carpenter’s web-based risk management platform. i-aXs users can view impacted areas on any map as well as see how their portfolios were affected. Please contact your broker or Instrat® representative for assistance or go to www.i-axs.info for further information.

Earl weakened after passing North Carolina and had been downgraded to a tropical storm by the time it reached the New England coastline. As its closest pass, the center of Earl was located 90 miles (145 kilometers) south-southeast of Nantucket in Massachusetts. Thereafter, Earl took a turn to the northeast, taking the center of the storm away from the New England coastline. This meant the stronger tropical storm force-winds remained offshore and Earl’s northeasterly motion saw only weak bands of tropical storm-force winds hit coastal regions of Massachusetts and Rhode Island. Although there were some reports of high winds and heavy rain in New England, officials said conditions were similar to a typical nor’easter storm and there have been no reports of significant damage.

Earlier, Earl skirted the northern Leeward Islands in the Caribbean, causing moderate damage. Anguilla was hit by hurricane-force winds, ripping roofs off buildings and downing trees and utility poles. The strength of the winds recorded on Anguilla triggered its hurricane coverage of the Caribbean Catastrophe Risk Insurance Facility (CCRIF). The CCRIF says it plans to payout USD4 million to Anguilla’s government. Elsewhere, St. Martin and the Virgin Islands were hit by tropical storm-force winds, causing minor damage. Disruption and damage was also reported in St. Maarten, Puerto Rico, Antigua & Barbuda and St. Kitts & Nevis. In total, AIR Worldwide estimates Earl caused insured losses of between USD50 million and USD150 million as it passed the northern Leeward Islands. The estimate includes wind damage to onshore properties in the Virgin Islands, St. Maarten, St. Martin and Puerto Rico. AIR estimates that up to 50 percent of losses are from St. Maarten, where high winds caused roof damage to buildings and toppled trees and power lines.

Sources: National Hurricane Center, WSI, Agence France Press, Associated Press, Reuters News, CNN News, BBC News, MarketWatch, EQECAT

Click here to read the previous update on this event >>

Click here to register for e-mail updates from GC Capital Ideas >>

Guy Carpenter’s Instrat® department provides CAT-i reports for major natural catastrophes worldwide. These reports cover catastrophes including worldwide tropical cyclones, earthquakes, major UK and European floods and any other natural event that is likely to incur a significant loss to the (re)insurance industry. Please email CAT.i@guycarp.com if you wish to be added to the free email distribution list.

Instrat also provides RISK-i reports for major technological or man-made events worldwide. These reports cover risks to property, transport and life including explosions, fires, crashes, engineering disasters and terrorist attacks that are likely to incur a significant loss to the (re)insurance industry. Please email RISK.i@guycarp.com if you wish to be added to the free email distribution list.

Hazard data illustrated in the CAT-i map was taken from i-aXs®, Guy Carpenter’s web-based risk management platform. i-aXs users can view impacted areas on any map as well as see how their portfolios were affected. Please contact your broker or Instrat® representative for assistance or go to www.i-axs.info for further information.

AddThis Feed Button
Bookmark and Share


Related Posts