KCC estimates $2.4bn insured loss from Hurricane Melissa

Privately insured losses from Hurricane Melissa are expected to reach around $2.4bn, according to an estimate from Karen Clark & Company (KCC).

The loss estimate, based on the high-resolution KCC Caribbean Hurricane Model, covers insured damage to residential, commercial and industrial properties in Jamaica and Cuba.

Melissa made landfall in Jamaica on 28 October as a Category 5 hurricane with maximum sustained winds of 185 mph, followed by a second landfall in Cuba the next day as a Category 3 storm with winds of 120 mph.

KCC said hurricane-force winds impacted the entire western half of Jamaica and parts of eastern Cuba, as well as several islands in the southern Bahamas.

The storm ranks among the most intense Atlantic hurricanes ever recorded, tying with the 1935 Labor Day hurricane as the most powerful to make landfall. It is the third Category 5 storm of the 2025 Atlantic season, a level of activity previously matched only in 2005.

KCC noted that the most severe damage occurred in Jamaica’s western parishes of St Elizabeth, St James and Westmoreland, where many structures suffered roof failures but retained wall integrity.

In Black River, St Elizabeth, wind speeds of 150 mph caused damage or destruction to more than three-quarters of buildings. Montego Bay saw winds of 135 mph and extensive commercial losses, while Savanna-la-Mar experienced significant, though less severe, damage.

Kingston escaped the worst impacts, with only tropical storm-force winds and limited losses.

In Cuba, buildings in affected areas sustained extensive roof and structural damage, with about 10% collapsing entirely and more than 30% losing roofs.

KCC said total economic losses across Jamaica and Cuba will be far higher than insured losses, given low levels of insurance penetration in both countries.

The loss estimate from KCC adds to other estimates and briefings put out by Verisk, Moody’s and Moody’s RMS in the aftermath of Melissa.