Atlantic Hurricane Season

AIR Worldwide has estimated that insurance and reinsurance industry losses to onshore property resulting from the wind and storm surge impacts of Hurricane Ida will be between $17 billion and $25 billion.

Flood damages suffered in the Mid-Atlantic and Northeast region of the United States from the remnants of hurricane Ida are expected to add double-digit billion dollars of economic loss to the overall toll from the storm.

The remnants of hurricane Ida have continued to drop torrential rain along its path north east and its slow pace and heavy downpours have now flooded parts of New York, all of which is heightening the risk posed to FEMA’s catastrophe bonds and reinsurance tower for the National Flood Insurance Program.

U.S. primary insurance carrier group FedNat Holding Company is anticipating reinsurance recoveries will help to minimise the impacts to its business from hurricane Ida, resulting in a net impact to the company less than its retention.

Insurance and reinsurance market losses from hurricane Ida could reach as high as $21 billion, according to analysis from data and analytics company CoreLogic.

The insurance and reinsurance market loss from hurricane Ida is estimated to be close to US $18 billion, according to modelled analysis from catastrophe risk specialist Karen Clark & Company.

A reasonable amount of the ultimate insurance market loss from hurricane Ida is expected to be shared with reinsurance capital, which rating agency AM Best believes will provide further momentum to already rising reinsurance pricing at renewals.

Hurricane Ida is expected to result in a significant loss event for the reinsurance market according to Fitch Ratings, who also believe that some aggregate covers may be at-risk of attaching on the back of Ida’s industry impact.

Hurricane Ida’s losses are anticipated to flow through the insurance market and hit the reinsurance market through quota shares and excess-of-loss arrangements, according to Moody’s Investors Service.

Hurricane Ida’s insurance and reinsurance industry loss may fall between $15 billion and $25 billion based on early indications from modelling data, according to specialist ILS manager Twelve Capital.