Insured Losses from Convective Storms in the U.S. exceedes $50 bn
The U.S. is experiencing its costliest year ever in 2023 for severe convective storms, with insured losses from these events exceeding $50 bn
Hurricane Ian was a deadly and extremely destructive Category 5 Atlantic hurricane, which was the third-costliest weather disaster on record, the deadliest hurricane to strike the state of Florida since the 1935 Labor Day hurricane, and the strongest hurricane to make landfall in Florida since Michael in 2018.
Ian caused widespread damage across western Cuba, Florida, and the Carolinas. Ian was the ninth named storm, fourth hurricane, and second major hurricane of the 2022 Atlantic hurricane season. Ian was the first Category 5 hurricane in the Atlantic since Lorenzo in 2019, and the fifth since 2016 to reach that strength before making landfall in the contiguous United States.
Ian originated from a tropical wave that moved off the coast of Western Africa and across the central tropical Atlantic towards the Windward Islands. The wave moved into the Caribbean Sea on September 21 bringing heavy rain and gusty winds to Trinidad and Tobago, the ABC islands, and the northern coast of South America.
The U.S. is experiencing its costliest year ever in 2023 for severe convective storms, with insured losses from these events exceeding $50 bn
Florida Hurricane Catastrophe Fund plays a vital role in Florida’s property-insurance system as it provides relatively low-cost reinsurance
The property catastrophe bond market supported new and repeat insurance, reinsurance and government sponsors
The natural disasters demonstrate that economic factors, in the last two years augmented by inflation, are the main driver of elevated insured losses from natural catastrophes
Natural disasters resulted in global economic losses of USD 275 billion, of which USD 125 billion were covered by insurance
ILS plays a key role in allowing catastrophe risk to be transferred from the commercial insurance market to investors, providing additional (re)insurance capacity
Climate change is taking an increasing toll. The natural disaster figures are dominated by events that are more intense or are occurring more frequently
Higher-risk focused insurance-linked securities (ILS) fund strategies appear to be averaging losses around the 17% mark after hurricane Ian
2022 is the second consecutive year in which the estimated insured losses total more than USD 100 billion
Insurers in Florida are currently barred from non-renewing or canceling policies, under an emergency order issued by the state’s Insurance Commissioner
The nationwide homeowners insurance giants in the U.S. have some of the highest level of catastrophe exposure to hurricane Ian, which is currently forecast to reach Florida
Because of significant exposure growth, the impact of social inflation, and climate change complications, Florida’s insurance market could struggle to respond to a repeat of a Category 5 hurricane