Sandy 'could make Top 10 most expensive US hurricanes'

Hurricane Sandy could become one of the top 10 most expensive hurricanes in US history, according to analysts.

Waves crash over homes along the shoreline in Milford, Connecticut
Waves crash over homes along the shoreline in Milford, Connecticut Credit: Reuters/Michelle McLoughlin

Disaster modelling company Eqecat, used by the industry to forecast storm exposure, said Sandy is likely to cause anywhere from $5 billion to $10 billion in insured losses - some of the largest losses the global insurance industry has faced this year.

Hurricane Irene, which hit the US last year, cost the insurance industry $4.3 billion.

However, Morgan Stanley analyst Gregory Locraft said today, "With $500 billion-plus of capital ... we expect the [property and casualty] industry is once again well prepared to pay all Frankenstorm insured losses".

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NY housing warning as cold hits

New York's political leaders warned that thousands could need to be re-housed as a cold snap hits the state. Near freezing temperatures are adding to the misery of communities devastated by superstorm Sandy across the east coast.