Insured losses from Hurricane Melissa estimated at up to $4.2 billion

(Reuters) – Insured losses from Hurricane Melissa’s strike on Jamaica are expected to range between $2.2 billion and $4.2 billion, according to estimates from data analytics firm Verisk.

The Category 5 hurricane made landfall in southwestern Jamaica last week, the Caribbean nation’s strongest-recorded storm to directly hit its shores, and the first major hurricane since 1988.

Verisk’s Extreme Event Solutions unit said most modeled losses were due to wind damage, with flooding from heavy rain also contributing. Montego Bay, a popular tourist location, also sustained major damage.

New Jersey-based Verisk primarily serves property/casualty insurers, providing catastrophe modeling and predictive analysis to help them with risk assessment and policy pricing.