Insurers Brace for $60 Billion in Losses from Hurricane Milton’s Devastation

Hurricane Milton, a Category 5 storm, has left a path of destruction along Florida’s Gulf Coast, potentially leading to insurance losses of up to $60 billion. More than one million residents were evacuated as the storm became one of the most devastating to hit the region. Analysts from RBC Capital forecast that the losses could mirror those caused by Hurricane Ian in 2022, with global reinsurers and insurers feeling the impact.

Insurance companies are expected to increase reinsurance rates, particularly for higher-risk properties, following Milton’s financial toll. Although shares of major reinsurers like Swiss Re, Munich Re, and Lloyd’s of London affiliates have dropped, RBC analysts project that prices will rise in upcoming renewals, leading to recovery. Industry experts agree that the event will prompt higher reinsurance rates throughout 2025. However, they believe the industry is better prepared to manage these challenges due to improved contracts and financial diversification.

As the storm’s financial aftermath unfolds, analysts anticipate heightened reinsurance activity and further price adjustments in the insurance market. The global industry faces mounting pressure as extreme weather events increase in frequency and severity.