Hurricane Ophelia will cost insurers around $800m in losses according to catastrophe modeller AIR Worldwide.

The hurricane battered most of the North Carolina coast with winds and heavy rains and despite never making landfall, it will be felt by the insurance industry which is already reeling from the losses caused by hurricane Katrina.

Jayanta Guin, vice president, research and modelling, at AIR Worldwide, said: "Though its strongest winds remained over the Atlantic, Ophelia will still impact the insurance industry.

He added: "Many areas were subject to hurricane and tropical storm-force winds for more than 24 hours. This continued pounding weakens building components and ultimately leads to more damage than would normally be expected at these wind speeds."

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