Insurance and reinsurance broker Aon has issued a warning that the total economic and insured losses caused by Hurricane Melissa could reach single-digit billions of US dollars, with the potential for higher figures following further damage assessments in the Caribbean. The storm, one of the most intense ever recorded in the Atlantic, has left widespread devastation across the region.
Hurricane Melissa, which reached estimated winds of 185 mph (298 kph) and a minimum central pressure of 892mb, crossed the rare sub-900 mb threshold, a significant meteorological event. The storm made landfall in Jamaica as a Category 5 hurricane, marking the first time the island has been hit by such a powerful storm. Approximately 77% of Jamaica’s electricity customers were left without power.
The hurricane’s effects were also severely felt in Haiti, the Dominican Republic, and Cuba, with extensive damage to property and infrastructure. In Cuba, the eastern region, particularly Santiago de Cuba, bore the brunt of the storm. Around 735,000 people were affected, with homes flooded, buildings collapsed, and roads blocked. The situation was further complicated by damaged communication infrastructure, making it difficult to assess the full scope of the destruction.
In Haiti, over 1,000 homes were flooded, and nearly 12,000 people were displaced into emergency shelters. The coastal town of Petit-Goave, located 64 km west of Port-au-Prince, saw extensive damage due to riverbanks bursting after heavy rains.
As of October 30, the storm had claimed at least 44 lives across the Caribbean: 29 in Haiti, 8 in Jamaica, 4 in the Dominican Republic, and 3 in Panama. The death toll is expected to rise as more information becomes available.
Currently, Hurricane Melissa is tracking towards Bermuda, with hurricane conditions expected before it weakens rapidly and transitions into an extratropical cyclone by November 1.
Jamaica, the hardest-hit country, has reported completely collapsed buildings, stripped trees, and widespread debris, particularly in the western part of the island. Communication lines in the most affected areas remain down, further hindering the assessment of damage.
In Jamaica, where insurance penetration is low, a portion of the losses will be covered by a recent catastrophe bond, in partnership with the World Bank and Aon. This bond, secured in 2024, triggers a full payout of $150 million if a hurricane hits with a minimum central pressure of 900 mb or lower. Additional funds may be available through the Caribbean Risk Insurance Facility (CCRIF SPC), based on parametric triggers like excess rainfall and wind speed.
However, Aon notes that most of the financial burden will fall on Jamaica’s economy due to its low levels of insurance coverage. In 2025, the Insurance Association of Jamaica reported that only 20% of residential properties were insured, with 95% of those underinsured. An AM Best report placed the total number of insured properties at just 5%.
The resort infrastructure in Jamaica has increased its exposure to risk since Hurricane Gilbert in 1988, and there are concerns about significant insured losses in both the commercial and residential sectors. Crop insurance is also a major concern, with only around 1,100 of 180,000 registered small farmers insured as of 2024.
The combined damage to private and public property, along with the destruction of infrastructure, is expected to result in substantial economic losses for Jamaica.