Insurance claims from Hurricane Dean are estimated to top $1.5 billion as the storm gathered momentum this morning (Australian time) and headed west towards Mexico’s Yucatan Peninsula.

Hurricane Dean buffeted Jamaica and the Lesser Antilles islands over the weekend with heavy rain and wind speeds of 240kmh.

Californian-based risk modeller Eqecat said on Sunday insurance losses could reach $US3 billion ($3.77 billion) based on data provided by the National Oceanic and Atmospheric Administration.

Beyond wind damage to commercial and residential fixed structures, such as office buildings, factories, warehouses, and homes, Eqecat’s insured loss estimates include business interruption, as a result of the destruction of property, and demand surge, which occurs when the demand for products and services to repair damage significantly exceeds the regional supply.

Hurricane Dean is the first major storm in the Atlantic hurricane season. The US National Hurricane Centre said in an advisory it was likely Hurricane Dean could wind speeds of 250kmh before making landfall.