Hurricane Katrina is likely to prove to be the most costly event ever to hit the global insurance industry, according to a report published by Standard & Poor's.
The report said that so far, even the low side of loss estimates (about $35bn) places it at almost twice the cost of the 11 September 2001 attacks and more than Hurricane Andrew, which had insured losses (inflation-adjusted) of $22bn, and the 2004 hurricane season, which had combined losses of $22.7bn.
Total economic damage estimates have now risen to $125bn and insured loss estimates are up to a high of $60bn.
The report, titled 'Hurricane Katrina Insurance Industry's Costliest Event', examines these estimates and the possibility that the losses might climb even higher.