Article img

Insider In Full: Tulane Uni notifies $100mn Ida claim as risk losses begin to emerge

  • Published by:

  • Topics:
    • Claims & Losses
    • Property - North America

Tulane University has filed a loss notification in the region of $100mn for damages to its owned properties from Hurricane Ida, this publication can reveal...

Catrin Shi

Sources said the placement is spread across the US and London property markets and brokered by Willis Towers Watson.

It is one of the first pieces of solid risk loss information to come to light following Ida, an event in which loss emergence has been slow.

The piecemeal nature of loss intelligence to date has led the market to question whether Ida will represent an exceptionally “slow burn” loss, or, at the extreme end, whether estimates of a $30bn-plus loss event are overblown.

The official name of the insured in this notification is The Administrators of Tulane Educational fund, also known as Tulane University, which is based in New Orleans.

The notification is understood to include losses to Tulane Medical Center, in which the university has a stake alongside the Hospital Corporation of America.

Ida made landfall on the Louisiana coast in August at Category 4 strength, representing the first major insured loss of the hurricane season.

It took what many described as a fortuitous path through Louisiana, with the strongest parts of the storm averting the major metro areas such as New Orleans and Baton Rouge. However, Ida went on to dump tremendous amounts of rain in the New York area, leading to flash floods and loss of life.

In the D&F market, there have been few major losses notified to date, with sources previously telling this publication that they would have expected a greater volume of claims by this time for a $30bn-plus loss event. Most risk loss notifications to date have been for partial losses, they said.

The Metropolitan Transportation Authority (MTA) in New York has estimated $75mn to $100mn in flooding damage across its subways, according to local media reports of the MTA’s September board meeting.

How much of this loss will be transferred to the private market, however, remains unclear. The MTA is reportedly seeking relief from the Federal Emergency Management Agency, although figures have not been disclosed.

London market D&F sources said losses from the MTA are watched closely by the market following the substantial losses from Superstorm Sandy in 2012.

At the time, the MTA sought to claim the full limit of its $1bn property policy after incurring some $5bn of damages from the event.

Willis Towers Watson declined to comment. Tulane University did not respond to a request for comment.

 

Insurance Insider delivers global wholesale, specialty, and (re)insurance intelligence that enables you to act first. Redeem your complimentary 14-day trial for more premium content from Insurance Insider.