hurricane

According to catastrophe risk modelling specialists Karen Clark & Co. the insurance market loss from hurricane Florence is likely to be only around $2.5 billion, based on privately market wind, storm surge, and inland flooding damage to residential, commercial, and industrial properties as well as automobiles.

Traditional reinsurance and alternative or insurance-linked securities (ILS) markets are only expected to take a small share, perhaps just a maximum of 15% to 20% of the overall industry-wide losses from hurricane Florence, although that could help to reduce some price pressure, analysts suggest.

Hurricane Florence impacted the Carolina’s right through the weekend, with a damaging storm surge, hurricane or tropical storm force winds and feet of torrential and prolonged rainfall that has severely flooded the region.

The leading catastrophe risk modellers have been furnishing their clients with projections for the potential impacts to the industry from hurricane Florence and according to various data sources the mean for wind insured losses appears to sit in the $3 billion to $3.5 billion range.

Rating agency Standard & Poor’s said that it expects that industry losses from hurricane Florence will be manageable, with no significant impacts to insurance and reinsurance interests.

Hurricane Florence could result in between $3 billion and $5 billion of insured wind and storm surge losses, according to analysis by risk analytics firm Corelogic.

Weakening hurricane Florence is now pounding the North and South Carolina coast, with the storms slow approach resulting in dangerous storm surge and flooding impacts, as torrential rains, river floods and storm surges of 10 feet are being reported.

The valuations of investments in some of the listed and mutual ILS funds have been fluctuating as hurricane Florence approaches the United States, but the latest forecast now suggests the threat has lessened somewhat.

While it’s still too early to estimate insurance and reinsurance industry losses from hurricane Florence, some insurance-linked securities (ILS) funds have been providing investors with an idea of their potential portfolio exposure, based on scenario loss totals.

Read our latest article on hurricane Florence here. Hurricane Florence continued to approach the North Carolina coast, but the latest forecast suggests a wobble to the south which could extend the coastal impacts from the storm. Life-threatening impacts are possible, but it remains very difficult to predict this hurricane and the impacts from water as […]