Insurers may face up to US$57b in Hurricane Ian bills, says risk-modelling firm

INSURERS are bracing for a hit of up to US$57 billion as they assess the damage to onshore property from Hurricane Ian, risk-modelling firm Verisk said on Monday (Oct 3).

The industry projection includes estimated wind, storm surge, and inland flood losses resulting from Ian’s landfalls in both Florida and South Carolina, Verisk said.

However, the estimate range, the lower end of which was US$42 billion, does not include elements such as losses to the National Flood Insurance Program, and any potential impacts of litigation or social inflation that could lead to a total insured industry loss of US$60 billion.

The death toll from Hurricane Ian climbed past 80 on Sunday, as embattled residents in Florida and the Carolinas grappled with a recovery expected to cost tens of billions of dollars, and some officials faced criticism over their response to the storm.

Additionally, an estimated 628,285 homes and businesses were still without power in Florida early on Monday, after Hurricane Ian crashed across the state last week.

About 1 per cent of the total industry loss will come from the impacts of Ian’s South Carolina landfall, Verisk said.

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US property data and analytics company CoreLogic on Friday pegged insured losses for Florida between US$28 billion and US$47 billion from Hurricane Ian, in what could be the costliest storm for the state since Hurricane Andrew in 1992.

Recovery is expected to be slow and difficult due to inflation, high interest rates, and labour and materials costs. REUTERS