Posted 31/08/2023 – Quick takes
On 30th August 2023, at 11.45 UTC, Hurricane Idalia made landfall at Keaton Beach in North Florida. At the time of impact, the storm was classified as a Category 3 hurricane with wind speeds of 125 miles per hour. The hurricane is following a north-northeastern trajectory impacting Georgia, North & South Carolina and the classification has now reduced to a Category 1 storm.
Reports from the industry indicate that the regions such as the Levy, Taylor and Dixie counties, have a low take-up of flood insurance, at around 5%, which reduces the potential for losses. Early indications suggest this hurricane is less destructive than initial fears and that total insurance losses will likely be less than $9bn.
It is still early to comment on the total cost to insurers, given that the storm is still working its way over the southern US states. However, initial reports from the industry are less concerning than originally feared. The property D&F and reinsurance classes have undergone a significant amount of remediation in recent years as a result of significant losses from previous hurricanes, including Ian, Ida and Irma. The work by underwriters to improve their terms and conditions will help reduce the impact of Hurricane Idalia by generally reducing the coverage for flood, unless it is purchased as an additional peril. We will keep you posted.