On September 6, 2017, Puerto Rico was hit by Irma, a massive category 5 hurricane that was on of the strongest storms ever recorded in the Atlantic. Two weeks later, on September 20, hurricane Maria passed directly over the island with even more devastating effects. Puerto Rican Governor Ricardo Rossello called Maria "the biggest and potentially most catastrophic hurricane to hit Puerto Rico in a century."
According to AIR Worldwide (AW), insurance industry losses in the Caribbean due to hurricane Maria will be between $40 Billion and $85 Billion, of which 85% account for losses in Puerto Rico. RMS estimated a more conservative figure of $15 Billion to $30 Billion for all the affected islands in the Caribbean. RMS points out that while Puerto Rico has an overall exposure of over $500 Billion, because the insurance penetration rate is only about 60%, the burden on insurers and reinsurers will be significantly less. So, private citizens and local businesses stand to bear a large part of the financial burden resulting from these hurricanes. [MORE]