Hurricane Ida Case: The combination of a storm and a plague bounces off insurance costs

Two days after Hurricane Ida hit, one of the worst storms to ever hit the U.S.”In, over a million homes and businesses in Louisiana and Mississippi, including New Orleans, were still cut off from electricity yesterday. While rescue teams evacuate residents from their flooded homes, insurance companies have worked hard to decipher satellite images to estimate wind damage. Read more in Calcalist: $ 150 billion market opens in US”In National Innovation and the Flag: Companies and Universities in the United States”B “Are harnessed” For the struggle in China”Catastrophic damage”: The hurricane “Ida” Hit in the southern United States”According to initial estimates, the volume of claims is expected to range from $ 15 billion to $ 30 billion, about a third of the costs of Hurricane Katrina, which hit in 2005. However, rising commodity prices and manpower prices in the wake of the Corona plague are expected to bounce back significantly, according to insurance experts quoted by Reuters.”In, as well as FedNat, American International Group and Travelers Campaigns.
6 View Gallery Hurricane Ida in the US"In Hurricane Ida in the US"In Hurricane Ida USA”In (AFP) although immediately after the damage they began asking customers about wind damage, property inspections are required to assess the extent of the flood damage. “Wind damage may be more visible, but it is not possible to estimate the water damage until it reaches the area”, Noted Anne Wilson, a property expert in the America Division, at insurance giant Swiss Re. Insurance costs for flood damage to residential buildings will be primarily covered by the Federal Flood Insurance Program (NFIP) operated by the Federal Emergency Management Agency (FEMA). At the same time, commercial property insurers are likely to sue for direct physical damages, as well as lawsuits for breaches of business activity and supply chains that extend beyond the disaster area, according to Robert O’Brien, senior director of the National Division of insurance company Marsh & McLanan. Power outages, floods, fuel shortages, flooded roads and other serious malfunctions are expected to disrupt production processes in the region for weeks, resulting in claims from businesses that are more geographically distant, unable to supply or sell products to Louisiana companies. “This event will serve as a reminder of the severity of the damage that can be caused as a result of storms”, Noted Craig Fulton, CEO”To the Fulton Insurance Company. 6 View Gallery Info When the Plague Meets Global Warming Part AInfo When the Plague Meets Global Warming Part A The consequences of a climate catastrophe in a period of global epidemic will also be reflected in global plastic prices, a material whose demand has climbed since the outbreak of the corona crisis. God”Financial Times” It is reported that the storm is expected to hit another blow on the supply of plastic raw materials, following the shutdown of the petrochemical plants in Louisiana, including by Exxon-Mobil and Dow Chemical. Louisiana is a leading center in the United States”In the production of petrochemicals, and now, the prices of the plastic components used in a variety of products, from takeaway boxes to PVC pipes are expected to rise, having already reached unprecedented highs. Ida is only adding to the aftermath of intense frost that hit Texas last winter and depleted the inventory of plastic components. 6 View Gallery Info When the Plague Meets Global Warming Part BInfo When the Plague Meets Global Warming Part B
6 View Gallery Info When the Plague Meets Global Warming Part CInfo When the Plague Meets Global Warming Part C Ida’s impact is also significant for the U.S. energy industry, due to an extensive system of oil wells, refineries, petrochemical plants, pipelines and gas plants located in the Gulf of Mexico natural disaster area. Energy companies began assessing the damage to their facilities yesterday, a day after the storm. In a conference call with the President of the United States”In Joe Biden, Louisiana Gov. John Bell Edwards said renewed power supply is critical to rehabilitation efforts. At the same time, Entarji, one of Louisiana’s leading electricity suppliers, said it would be weeks before the service was restored, which could hurt the return to energy, water and sewage infrastructure. The company reported “Catastrophic damage to electricity transmission” Following the collapse of lines. Slow restoration for oil and gas refineries, including Shell and BP, evacuated most of their Gulf Mexican rigs toward the end of the storm, closing production at 1.74 million barrels a day, equivalent to about 15 percent of U.S. daily output. At the same time, almost 94% of the natural gas production in the area has been shut down. At least nine refineries have reduced or shut down fuel production ahead of the storm, which is about 13 percent of the U.S. fuel industry, according to the Department of Energy. According to analysts, oil production is expected to recover faster than refinery activity, leading to rising oil prices in the coming days. “The recovery of hurricane-force offshore drilling is usually measured in days, while a return to the refinery routine is measured in weeks or even months.”, Noted analysts at Kuan Investment Bank, quoted in the Financial Times. 6 View Gallery Ruins of a building in New OrleansRuins of a building in New OrleansRuins of a building in New Orleans after Hurricane Ida (AFP) Oil prices are climbing and indeed, according to forecasts, Brent barrel prices climbed to $ 73.69 yesterday, the highest price since the beginning of August, and hovered around $ 73.40 yesterday. Last week, ahead of the expected violations due to the predicted storm, oil prices recorded a jump of 11.5%, the steepest weekly increase since June 2020.”UBS Bank in Louisiana has 17 refineries, with an aggregate capacity of 3.4 million barrels per day, about 20% of total U.S. output. The aggregate losses in production may be around 10 million barrels or more, due to the need to check the integrity of the rigs before resuming operations. To date, nearly 6.2 million barrels have been lost due to the storm. As a result, UBS notes that the hurricane is a reminder that oil markets will become more vulnerable to such incidents, which will be added to geopolitical violations, and cause demand to exceed supply. 6 View Gallery John Bell Edwards, Governor of LouisianaJohn Bell Edwards, Governor of LouisianaLouisiana Gov. John Bell Edwards. “Catastrophic damage to the electrical system”
(AP) As well as being an important center for the production of energy and plastics, Louisiana is also an exporter of diverse agricultural produce, from sugar cane and corn to rice, cotton and soybeans. “The parties involved can be anywhere”, Said O’Brien, of insurance company Marsh & McLanan. “A local event can give its signals around the world”.

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