Storm Sandy is set to become the costliest storm for the insurance sector after Hurricane Katrina in 2005. The damage caused by Storm Sandy are expected to cost between $2 billion and $2.5 billion  for Lloyds of London in claims.

According to Lloyd’s said that this estimate is consistent with predicted industry losses of between $20 billion and $25 billion.

Lloyd’s Chief Executive Richard Ward said: ‘As always, our priority is to pay valid claims as quickly as possible and help the communities in North America and the Caribbean affected by Sandy get back on their feet.

‘The Lloyd’s insurance market remains financially strong and, while claims from this storm could still evolve over time, the market’s total exposure is well within the worst-case scenarios we model and prepare for.’

Rebuilding communities after disasters is an important function of the insurance industry. Find out about the Insurance industry and disasters.