While the impending Hurricane Sandy may have kept the financial markets (and the New York City subways) closed today, insurers are gearing up for what’s likely to be one of their busiest weeks of their year. As we reported earlier, some $87 billion worth of property – or 284,000 U.S. homes — in the path of Hurricane Sandy are at major risk of flood and storm damage; in the New York metro area more than 119,000 homes are at severe risk.
While federal flood insurance will cover the damage in some instances, national insurers will have to shoulder some of the burden, which is expected to exceed the $4.3 billion in losses from last year’s Hurricane Irene. Janney Montgomery analyst Larry Greenberg told the Wall Street Journal losses could total up to $6 billion, though other news outlets are estimating up to $10 billion. See the video after the jump. [more]