Who’s going to pay the bill for Hurricane Sandy? Look to Aunt Agnes

To figure out the risks of Hurricane Sandy, a member of the Lloyds of London insurance syndicate looks to a historical database. The most comparable storm is 1972’s Hurricane Agnes, which caused $19 billion of damage after adjusting for inflation. Private insurers can expect to bear $5-$10 million of the final cost, according to actuarial firms, with the government, companies and private citizens picking up the rest.