Hurricane Melissa Damage in Jamaica Could Rise Up to US$16 Billion

Jamaica is facing widespread devastation following the passage of Hurricane Melissa, one of the worst Hurricane the island faced, with preliminary assessments estimating damages between US$5 billion and US$16 billion.

The Category 5 storm made landfall on Tuesday, October 28, leaving a trail of destruction across several western parishes, including St Elizabeth, Manchester, Westmoreland, Hanover, and St James.

In response, Jamaica is set to receive a US$150 million (approximately J$24 billion) payout from its catastrophe bond, a first-of-its-kind financial mechanism designed to provide rapid disaster relief. The funds will be directed towards recovery and rebuilding efforts in affected areas.

Disaster modeller Chuck Watson of Enki Research described Hurricane Melissa as a “worst-case scenario” for the island, noting that it could surpass the destruction caused by Hurricane Gilbert in 1988, which resulted in US$7 billion in losses.

“Hurricane Melissa is just about the worst scenario you can imagine,” Watson told Bloomberg, adding that the scale of damage could be twice that of Gilbert.

The town of Black River in St Elizabeth was among the hardest hit, with extensive flooding and infrastructure damage.

According to Artemis, an international catastrophe bond analysis platform, Jamaica’s disaster risk insurance framework is expected to play a crucial role in stabilising the economy and supporting recovery efforts following the storm.

Authorities continue to assess the full extent of the damage as relief and reconstruction operations intensify across the island.