Insured losses from Hurricane Melissa’s strike on Jamaica are expected to range between $2.2 billion and $4.2 billion, according to estimates from data analytics firm Verisk.

The Category 5 hurricane made landfall in southwestern Jamaica last week, the Caribbean nation’s strongest-ever storm to directly hit its shores, and the first major hurricane since 1988.

Verisk’s Extreme Event Solutions unit said most modeled losses were due to wind damage, with flooding from heavy rain also contributing. Montego Bay, a popular tourist location, also sustained major damage.

Extreme weather, intensified by climate change, challenges the insurance industry with mounting costs from frequent and severe natural disasters. Rising claims have pressured underwriting results and forced insurers to reassess risk models and pricing strategies.

New Jersey-based Verisk primarily serves property and casualty insurers, providing catastrophe modeling and predictive analysis to help them with risk assessment and policy pricing.

Photograph: An aerial view of Black River, Jamaica, Thursday, Oct. 30, 2025, in the aftermath of Hurricane Melissa. (AP Photo/Matias Delacroix)