Billions in Insurance Claims Expected From Hurricane Idalia
Thursday, August 31st, 2023 CatastropheInsurers were expected to face claims for billions of dollars from Hurricane Idalia which made landfall in Florida on Wednesday, adding to a challenging year for the industry that could result in higher premiums for customers.
Hurricane Idalia plowed into Florida’s Gulf Coast with fierce winds, torrential rains and pounding surf before weakening but turning its fury on southeastern Georgia, where floodwaters trapped some residents in their homes.
In Florida, UBS bank estimated average insured losses of $9.36 billion with a 50% chance of losses of over $4.05 billion and a 10% likelihood of losses of $25.6 billion, based on Aug. 28 data. The wide range reflected potential changes in the storm’s intensity and path.
At about $10 billion, Idalia would cost insurers less than 10 of the costliest hurricanes to hit the United States.
