Today’s report titled, “No Respite For Re/Insurers As Hurricane Irma Prepares To Give A Big Jolt,” from S&P Global Ratings has bad news for insurers and reinsurers alike. Depending on the extent to which Hurricane Irma makes a landfall in Florida, there could be much higher insured losses compared to Hurricane Harvey. As projected by AIR Worldwide, if a Category 5, Andrew-like hurricane were to strike just south of Miami and a little north of the city of Homestead, the total insured losses for Florida could reach upward of $130 billion.
“Strong capitalization will help mitigate the impact, but Irma will likely stress-test not only the re/insurers but also the staying power of third-party capital,” said S&P Global credit analyst Hardeep Manku. “Regional pricing is also likely to harden, but the impact on global re/insurance pricing is debatable,” he added.
While tallying losses to date from Hurricane Harvey, the re/insurance sector is likely to have little respite as Hurricane Irma is shaping up to cause a far greater hit to lives and homes than Hurricane Harvey.
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Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
