Reinsurance Brokers Caution of Hurricane Milton’s Potential Impact on Florida

Reinsurance brokers are raising concerns over the possible significant impacts of Hurricane Milton, currently a Category 3 storm, as it tracks toward Florida’s west coast. The National Hurricane Center predicts rapid intensification, with Milton potentially reaching Category 4 before making landfall, possibly near Tampa Bay. Guy Carpenter and Howden Re, leading reinsurance firms, highlight the uncertainty surrounding Milton’s path and strength, emphasizing that this unique storm could cause unprecedented damage in the region.

The storm is expected to strengthen as it passes over the Gulf Loop, a warm-water current that could fuel its intensity. Forecasts suggest wind damage and storm surges of up to 15 feet, similar to the devastating Tampa Bay Hurricane of 1921. However, changes in wind shear closer to Florida could weaken the storm before landfall. Despite these unknowns, Milton poses a serious threat to the area, with insurers and reinsurers closely monitoring the storm’s development.

Milton follows closely on the heels of Hurricane Helene, which brought significant flooding and damage, raising fears of further economic and insured losses in the region. Historical trends also indicate that Florida’s west coast, particularly in October, is vulnerable to such storms.