Jamaica’s insured losses from Melissa could reach US$4b, analytics firm says
Published:Wednesday | November 5, 2025 | 12:21 AM
Verisk Analytics, a global data analytics firm, estimates that insured property losses from Hurricane Melissa in Jamaica could range between US$2.2 billion and US$4.2 billion, but these figures await corroboration from local insurance and other authorities.
The upper end of the range translates to around $670 billion in local currency.
The estimate, released on Monday, November 3, by Verisk’s Extreme Event Solutions group, reflects damage from both wind and precipitation-induced flooding, with most of the modelled losses attributed to wind damage. Hurricane Melissa made landfall on October 28 near New Hope in Westmoreland with sustained winds of 185 miles per hour, ranking among the most intense hurricane landfalls globally on record.
Verisk, a publicly traded firm, which reported US$3.05 billion in annual revenue for 2025, serves as an analytics partner to the global insurance industry. Its catastrophe models help insurers estimate exposure and guide underwriting. The Melissa estimate excludes damage to uninsured properties, infrastructure, marine assets, and losses in Cuba, Haiti, and The Bahamas.
Jamaica’s economic output, or GDP, is about US$20 billion, which puts the damage estimate by Verisk at around a fifth of GDP.
The Insurance Association of Jamaica said Tuesday that local insurers were still tallying the losses. IAJ Executive Director Everton McFarlane said the association will first send its preliminary estimates to the Financial Services Commission, which regulates the insurance sector, and thereafter the public will be notified.
McFarlane said he was aware of the Verisk report but declined to comment, noting only that losses could be substantial.
Hurricanes Gilbert in 1988 and later Hurricane Ivan led to damage of some 10 per cent and 5.0 per cent of GDP, respectively, according to the World Bank. Other sources put Gilbert’s impact at 28 per cent to half of Jamaica’s GDP.
Melissa’s impact on Jamaica was historic.
“Many neighbourhoods in St Elizabeth parish… are reporting significant damage, with 80 to 90 per cent and, in certain cases, 100 per cent of roofs destroyed,” Verisk stated, noting damage from Black River and Barbary Hall to Montego Bay and Kingston.
Jamaica’s vulnerability was said to be compounded by outdated construction practices and limited insurance coverage.
“The residential building inventory in Jamaica is dominated by masonry construction at almost 70 per cent … with minimal to almost no professional input,” the report noted.
Although Jamaica operates under international and local building codes, Verisk warned of “significant damage” to the built environment. “Non-engineered residential buildings and engineered commercial buildings experienced similar degrees of damage,” the firm said.
Verisk said homes, grocery stores, gas stations, airports and hospitals were impacted by wind and flooding. Compounding the challenge, only a small fraction of residential homes carry insurance, it added.