Hurricane Irene causes losses worth more than $1 billion

The rubble and debris at the Caribbean are indicative of further scathing storms to cost businesses and properties this weekend, caution latest climatologists reports.

Hurricane Irene already accounts for the insured losses worth $1.1 billion in the Caribbean, says latest loss estimates reports submitted by a disaster modeling firm, AIR Worldwide,

Both wind and water are equally responsible for the damages wreaked upon residences, businesses and automobiles.

The storm affected the most in Bahamas
Hurricane Irene has taken a huge toll on Atlantic island country of Bahamas. The country suffered around 60 percent of the total loss this time. The destruction suffered by Bahamas is significantly higher than the one suffered during Hurricane Floyd in 1999, confirmed disaster experts of AIR.

The major reason behind higher damages this time is the path through which the storm blew this time. Floyd fleeted the east of the Bahamas; its most powerful winds rested on the right side and flew over the water, while Irene took the west path of various islands.

Scott Stransky, an AIR researcher said, "Irene’s large size meant that almost all of the Bahamas was subject to strong winds for more than a day," said.

The storm knocked down the trees, swamped the streets and devastated the biggest tourist center in the capital city of Nassau.

Insurers cautioned against losses
As hurricane Irene is likely to claim financial losses in billions, insurers will face a steep increase in their cost of credit default swaps, predict financial experts.

Earlier in 2005, Floyd was responsible for $71 billion in the insured losses. Insurers like Chubb and Allstate have explained that they are cautioned by the consequences of the catastrophe and learning from the losses incurred in past.

This year, the storms have already caused damage worth $500 million which includes business losses caused by inevitable storm interruption.