To figure out the risks of Hurricane Sandy, a member of the Lloyds of London insurance syndicate looks to a historical database. The most comparable storm is 1972’s Hurricane Agnes, which caused $19 billion of damage after adjusting for inflation. Private insurers can expect to bear $5-$10 million of the final cost, according to actuarial firms, with the government, companies and private citizens picking up the rest.
Who’s going to pay the bill for Hurricane Sandy? Look to Aunt Agnes
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