As reported yesterday in this blog, Sandy is on its way to becoming a hurricane. When winds rise past 65 miles per hour, Sandy can be classified as a hurricane.

So far, three fatalities have been seen due to the damage of the storm, with one person in Cuba dying and the other two in Jamaica and Haiti. The storm has doubled in size in the last 24 hours and has hurricane winds extending throughout its center that equaled 140 miles per hour. As Sandy hits land, it is expected to weaken when it moves through Jamaica and eastern Cuba. Some forecast models show that the storm may turn into a Category 2 hurricane.

Today, the hurricane became a serious threat to the eastern part of the United States, Reuters reported. Southeastern Cuba was hit with winds as high as 105 miles per hour, which officially classifies Sandy as a hurricane, as it cut power lines and downed trees throughout the region.

Many houses were damaged and destroyed by the hurricane. The United States will be impact next week, according to forecasts. The eastern coast will have significant rainfall and flooding. Also, this may lead to landslides across some regions.

"It's going to be a high-impact event," Bob Oravec, a forecaster with the National Oceanic and Atmospheric Administration's Hydro-Meteorological Prediction Center in Maryland, told the source. "It has the potential to be a very significant storm with respect to coastal flooding, depending on exactly where it comes in. Power outages are definitely a big threat."

Insurers along the East Coast will be left with a high amount of claims processing work due to Hurricane Sandy after next week. Some experts believe damages will amount to about $1 billion. As such, outsourcing claims processing to a claims vendor organization will become a necessity.