Update on Hurricane Idalia
Posted 08/09/2023 – Quick takes
Hurricane Idalia has now moved away from the US and through the Caribbean, with the picture becoming clearer about the scale of insured losses. Initially, the industry was concerned given that at its peak strength this was a Category 4 hurricane, but these fears have now been quelled. Catastrophe modelling companies have been re-evaluating their loss estimates and although the estimate ranges differ by quantum, almost all approximations have been reduced. Moody’s RMS reduced their estimate by $1bn to $6.3bn, KCC’s recent modelling suggests insured losses of $2.2bn and Verisk’s loss approximation is currently in the range $2.5bn to $4bn.
Our original article on Hurricane Idalia is here
US hurricanes are a component of the insurance market and they are almost inevitable each year. Although total industry losses at this stage are still early estimates, they are moving in the right direction. All in all, Hurricane Idalia does seem to have been a less costly major loss as compared with other hurricanes that have devastated Florida in recent years.