This month, the nation’s best hurricane experts met for the first time ever with nervous insurance industry reps about a storm lurking beyond the horizon.
“The risk is increasing and it’s increasing every year,” catastrophe risk analyst Karen Clark told CBS News correspondent Michelle Miller.
That storm a long overdue northeast hurricane which the latest computer models now predict could devastate the region and cripple the U.S. economy.
“It will be the largest financial disaster that this country has ever seen,” Clark, the president and CEO of AIR Worldwide, said.
A direct hit on New York’s Long Island by a Category 3 or higher hurricane would cost $100 billion.
But the same size storm spinning into central New Jersey would be catastrophic — raking New York and points north with its strongest winds. The result: $200 billion in damages and lost business.
“And much of that disruption will not be covered by insurance,” Clark said.
A major northeast hurricane is nearly three times more likely this year thanks to favorable weather conditions, including the position of the Bermuda High. Last year it pushed storms southwest. Now it’s set to steer hurricanes up the East Coast.