Hurricane Katrina could cost insurers as much as $25bn (£14bn), experts say, although the financial impact may be less severe than first thought. Katrina has left a trail of destruction in its wake, claiming 80 lives and leaving a million homes without power. It has caused millions of dollars worth of damage in Louisiana and Mississippi. Experts said Katrina could be as expensive as 1992's Hurricane Andrew - which at $21bn is the most expensive in US history. Differing estimates Although the storm was downgraded from category five to three, winds reached up to 155mph (250k/ph), causing substantial damage across Louisiana, Mississippi and Alabama. "Katrina is in a range comparable to Andrew, cost-wise," David Bresch, head of the Atmospheric Perils Group at reinsurer Swiss Re, said on Tuesday. "But it will take another couple of days before we have an estimate, as the flooding is still going on." US insurers have put the likely cost of claims at up to $25bn while Munich Re, the world's top reinsurer, estimated a slightly lower figure of $15bn-$20bn. MOST COSTLY US HURRICANES* Andrew - 1992 - cost $21bn Charley - 2004 - $15bn Ivan - 2004 - $14.2bn Frances -2004 - $8.9bn Hugo - 1989 - $7bn *Source: National Oceanic and Atmospheric Administration (adjusted for inflation) However, experts also said Katrina's path - which took it around the most densely populated areas - may have lessened its financial impact. "Projections that this is going to be the worst ever are probably off... we're probably looking at something that's in the top five," said Robert Hartwig, chief economist at the Insurance Information Institute. Oil impact Insurance consultancy Eqecat reduced its estimate of damage-related claims from an initial $15bn-$30bn to a maximum of $16bn after the eye of the storm passed veered away from the centre of New Orleans. Eqecat said its estimate did not include damage to oil rigs in the Gulf of Mexico - many of which are more than 25 years old - and warned that predicting damages could be tricky. "We do know the storm path went through an area where there are a number of production platforms," said Rick Clinton, Eqecat's president. "When you start looking at the older platforms, built prior to 1980 and 1970, that will have a dramatic impact." Shares in a number of Europe's leading insurers and reinsurers - including Munich Re and Allianz - rose on Tuesday on expectations that the size of claims would not be as high as initially thought. Munich Re said its own share of the likely insurance bill would be an estimated 400m euros and would not affect its profits. Knock-on effect However, as well as insurance costs, the huge storm could have other knock-on effects. If it leads to higher oil prices for a considerable time, that could have a serious effect on some big US airlines who are either struggling to avoid bankruptcy - as in the case of Delta and Northwest - or trying to come out of Chapter 11, like United Airways and US Air. And Standard & Poor's says that the storm could lower US GDP in the third quarter of the year, as energy and tourism output drops. But the company says that economic growth will recover as spending on rebuilding would boost growth. Reprinted from bbccaribbean.com