tropical storm Florence 2018

According to the state’s Governor Roy Cooper, the economic impact of hurricane Florence on North Carolina could reach as high as $17 billion, which would put the percentage covered by private insurance as low as 27%.

Differences between estimates are again evident in the catastrophe risk modelling space, as Corelogic delivers a figure for hurricane Florence’s flood insurance industry losses that suggests the NFIP’s flood reinsurance program is still in the frame to be triggered.

The insurance and reinsurance market-wide loss from recent hurricane Florence’s impacts in the Carolina’s and surrounding region of the United States is expected to be in a range from $2.8 billion to as much as $5 billion and this is including an NFIP flood insurance claims estimate.

Collateralized reinsurance quota shares and retrocessional protections that sit in lower layers of cedant’s towers are the most likely source of ILS market losses from hurricane Florence, according to rating agency Fitch.

Valuations of some of the listed and mutual insurance-linked securities (ILS) fund strategies have stabilised or even begun to recover after hurricane Florence’s impacts proved to be less severe to ILS investments than had initially been anticipated.

The insurance-linked securities (ILS) industry and third-party reinsurance capital providers recognised that hurricane Florence would not be a market-changing event and reacted accordingly.

The impact to insurance and reinsurance interests from the wind and storm surge damage caused by hurricane Florence is estimated to be in a range from $1.7 billion to as much as $4.6 billion, by AIR Worldwide.

U.S. primary insurer FedNat does not expect that it will be able to tap into its reinsurance program to help it pay for losses from hurricane Florence, as the company only expects a minor hit to its operations in South Carolina.

Activity in the market for live cat (live catastrophe) trading and protection buying was lighter for hurricane Florence than other recent storms, in terms of volume traded, but some ILW trades were completed as the storm approached.

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.