Hurricane Melissa made landfall in Jamaica as a Category 5 storm, one of the strongest ever recorded in the Atlantic Basin, on Tuesday, Oct. 28, 2025. The storm reached winds of 185 mph and a pressure of 892 millibars, according to The Weather Channel. AccuWeather reports that Hurricane Melissa represents the strongest landfall on record for Jamaica. The storm ties the 1935 Labor Day Hurricane that hit the Florida Keys for third in barometric pressure and second in terms of wind speed recorded in the Atlantic Basin, states The Weather Channel.
The Role of Catastrophe Bonds in Jamaica
“Early data from the National Hurricane Center shows Hurricane Melissa’s pressure has stayed below 900 millibars in several areas—a clear sign of just how powerful this storm is,” Chris Lefferdink, head of insurance linked securities, North America, for Aon tells CLM. “Under the IBRD 136 Jamaica cat bond, that level of intensity could trigger a 100% payout once it’s confirmed by an independent reviewer. While the final numbers are still being verified, the early signs suggest the transaction is doing what it was designed to do: getting critical funds to the country quickly after a major disaster.”
Dan Hartung, global head of event response, Aon, adds that “Hurricane Gilbert in 1988 remains the costliest storm in Jamaica’s history, with inflation-adjusted economic losses of $4.1 billion and insured losses of just $215 million. That gap underscores a persistent challenge—low insurance penetration across the region—which continues to leave communities exposed to the full financial impact of extreme weather. Early warning systems and better financial protections, such as catastrophe bonds, help to speed up recovery.”
Furthermore, continues Hartung, “As Hurricane Melissa makes landfall, Gilbert serves as a sobering benchmark. Historical loss data shows that while the economic toll of major hurricanes can be severe, insured losses often represent only a small fraction of total damage.” Jamaica’s catastrophe bond helps to bridge the gap by providing immediate, pre-agreed funding for recovery efforts, Hartung emphasizes.
“Jamaica's catastrophe bonds are a great example of how new forms of insurance can deliver funding quickly after extreme weather. Innovation in risk modeling and structured finance is essential to building resilience for communities when they need it most,” concludes Lefferdink.
Forecasting Accuracy
According to CNN, despite cuts to NOAA’s programs and data-gathering this past year, the National Hurricane Center’s (NHC) forecasts for Hurricane Melissa have been “remarkably on target, according to data from the NHC.” The addition of AI forecast models, “particularly the Google DeepMind model, may have helped bolster the knowledge and confidence of forecasters to issue…specific predictions so far in advance and stick with them.”
Damage so Far
So far, according to CNN, Melissa has extensively damaged homes, hospitals, and schools in southwestern Jamaica and has caused seven deaths—three in Jamaica during storm preparation, three in Haiti and one in the Dominican Republic. CNN reports that “at least 25 people have died in Petit-Goâve, Haiti, after a river flooded by Melissa burst its banks, the local mayor said.” The Jamaican government cannot yet provide an update on its deaths from the hurricane.
AccuWeather preliminarily estimates total damage and economic losses in Jamaica to be $22 billion as of Tuesday evening. There has been significant damage to infrastructure throughout the country, and close to 15,000 Jamaicans are in emergency shelters. Meanwhile, over 530,000 people are without electricity, making up more than 77% of Jamaica Public Service customers across the country, states CNN.
Jamaica’s government gave the “all-clear” notice after the hurricane left the island on Wednesday, CNN reports, meaning that the country’s utility companies can now commence restoration operations.
Landfall in Cuba
Early Wednesday morning, the hurricane made landfall in Cuba as a Category 3, according to the National Hurricane Center, and as of 11am ET, it moved off Cuba as a Category 2 headed toward the Bahamas. Over 735,000 people had been evacuated from Cuba by Tuesday evening. About 140,000 people are cut off due to river level rise, and significant damage has been reported.
Heading for the Bahamas
According to CNN, Cuba’s mountainous terrain disrupted Hurricane Melissa’s center and “jostled the roaring winds that have been wrapped up and circling its eye, causing them to spread out,” meaning that some islands in and around the Bahamas will endure stronger winds than initially anticipated. The Bahamas can now expect up to seven feet of storm surge in certain areas, especially in the afternoon and evening.
This article will be updated with more information as news becomes available.