This was a bad storm.
From Artemis, October 22:
The industry loss to insurance and reinsurance interests from hurricane Michael is estimated to be somewhere between $6.8 billion and $10 billion by RMS, with the majority driven by wind damage to residential properties.
RMS’ industry loss estimate for hurricane Michael aligns with others that suggest the final bill to the insurance sector will be somewhere around the $8 billion mark.
RMS’ estimate includes insured wind and storm surge damage caused by hurricane Michael across Florida, Georgia and other states in the U.S. that were affected by the storm. It also includes the estimate of losses for the NFIP, which at between $250 million and $750 million is well below the NFIP’s reinsurance program and catastrophe bond attachment points.
Hurricane Michael’s winds are estimated to have caused between $6.4 billion and $8.7 billion of the total bill, while storm surge flooding and damages are thought to have caused $400 million to $1.3 billion of insured losses.
As we said, RMS’ estimate is aligned with others that tend to point towards a final bill of around $8 billion for insurance and reinsurance interests.
AIR Worldwide had put the industry loss at $6 billion to $10 billion, Karen Clark & Co. at close to $8 billion, while Corelogic’s estimate was somewhat lower at up to $5 billion.
The industry loss estimate from catastrophe risk modelling firm RMS factors in property damage and business interruption losses to residential, commercial, industrial, and automobile lines of business, as well as post-loss amplification and certain non-modeled losses are accounted for....MUCH MORE
