Harvey to cost Texas $58 billion in losses: report

By AFP   August 31, 2017 | 08:20 am GMT+7
Harvey to cost Texas $58 billion in losses: report
A father hands his daughter to her mother as they evacuate from Walkers Mark Townhomes in Houston on August 30 as the fourth largest city in the U.S. battles with tropical storm Harvey and resulting floods. Photo by AFP

If that estimate holds, it would make Harvey the world's 9th most expensive natural disaster since 1900.

Economic losses in Texas from Hurricane Harvey, which is still pounding the water-logged U.S. state with rain, will be some $58 billion, according to a report released Thursday by disaster analysts in Germany.

If that estimate holds, it would make Harvey the world's 9th most expensive natural disaster since 1900, according to the Center for Disaster Management and Risk Reduction Technology (CEDIM) in Karlsruhe, Germany.

"The damage is extensive at around $58 billion, and is over 90 percent due to flooding," said James Daniell, senior risk engineer at CEDIM, and head of its Forensic Disaster Analysis Group.

Other calculations of total economic loss have been considerably lower.

German insurance giant Hannover Re's initial figure for damages was $3 billion, while JP Morgan estimated the insurance sector could be out $10-20 billion.

Disaster risk specialists Enki Holdings, based in Savannah, Georgia, puts the total tab at above $30 billion.

To measure the region's risk exposure, CEDIM used data from the U.S. Bureau of Economic Analysis, which tracks investment.

"But we also checked that against building and replacement cost data," Daniell said. "That's usually the issue with a lot of other models -- they don't get the exposure right."

Total capital stock in Texas is about $4.5 trillion, and for the entire United States the figure is about $56 trillion, he said.

Their estimates are based in part on the world's largest database of natural catastrophes, covering over 41,000 events since 1900.