Hurricane Dorian could hit the insurance industry with more than $25 billion in losses, UBS says ☘ Hoey Team ☘ eXp Realty Florida

Dated: September 8 2019

Views: 6

Reuters

  • Hurricane Dorian could cost insurers more than $25 billion, according to recent research from UBS.
  • The analysts said the storm could bring total losses of as much as $40 billion, depending on where it hits Florida's coast.
  • Though reinsurers have built up $30 billion in excess capital since Hurricane Maria in 2017, UBS estimated that Dorian could wipe out reserves and lead the companies to raise their prices.
  • Read the latest coverage of Hurricane Dorian here.

Hurricane Dorian could cost insurance companies more than $25 billion after battering the Bahamas and surging over Florida's eastern coast, according to UBS analysts cited by CNBC.

The bank recently widened its loss estimate and now expects Dorian to cause $5 billion to $40 billion worth of damage. It also increased its base case for the storm's impact on insurers to $25 billion from $15 billion.

Dorian is the most powerful storm to hit the Atlantic since the 1935 Labor Day hurricane, according to the National Hurricane Center.

UBS noted that the two-year gap between Hurricane Maria in 2017 and Dorian allowed reinsurers to pull together $30 billion in excess capital. UBS estimated that Dorian could wipe out the reserve and lead reinsurers to raise prices.

The hurricane pummeled the Bahamas over Labor Day weekend and is expected to hit Florida on Tuesday, according to the NHC. Forecasts have shown the storm weakening and increasing in size as it creeps up the US's East Coast this week. Dorian is expected to reach Georgia on Wednesday and South Carolina on Thursday morning.

A Friday note from UBS compared Dorian to 2004's Hurricane Jeanne, which took a similar trajectory and caused about $5 billion in insured losses.

Risk Management Solutions estimated that Jeanne would have caused about $13 billion in damages today based on current demographics and costs in the affected area. The risk-modeling company used Jeanne's path, population growth, and inflation data to estimate Dorian's damages at $11 billion to $37 billion.

The region's "unique" insurance landscape places greater risk in reinsurers, UBS said in its note on Friday. Major insurance companies have relatively little market share in Florida compared with regional providers, which tend to rely heavily on private reinsurance plans and the state's Hurricane Catastrophe Fund, the analysts said.

Article content from Markets Insider; let us know if you have questions on any aspect of the real estate market.

Barry is a CLHMS see here how we can help with higher end properties.

Please visit or share our Hoey Team ☘ Luxury Home Market Page Here

Also; please check out the other blogs, and tabs to many other Links, Updates, Reports & Stats that we have here on our informational website.  

We hope that you find the information useful.  If you have any questions, please do not hesitate to contact Barry or Kim with the Hoey Team  brokered by eXp Realty

Email us at Barry@SWFLLuxury.Com  or KimZuponcic@Gmail.com or Call/Text the Hoey Team ☘ at:  (239)-360-5527 

“Please Share this and our informational website with anyone who you think the info will help. 

Feel free to refer any family or friends; it is the greatest compliment that you can give to us; we really appreciate referrals from Past Customers, Friends and Fellow REALTORS, who we help in any way we can. 

Most of our business is referrals by word of mouth; from past Sellers and Buyers who we have helped; please ask for and check out our testimonials and Sales Stats.  Thanks, Barry & Kim 

Blog author image

Barry & Kim, Hoey Team ☘ exp

"Your Real Estate Concierge" If you are looking for a REALTOR® or one-stop Real Estate Team who will fully communicate; promptly, professionally, and in detail with you, to efficiently help you wit....

Latest Blog Posts

🚨 Where Termites Tend to Be the Worst ☘ Hoey Team ☘ exp Realty 🌴 Southwest Florida 🍀

April 9, 2021  Watch out in Miami, Los Angeles, and Tampa, Fla.: These places can be hotbeds for termites, according to Orkin’s 2021 Top 50 Termite Cities List.Orkin, a national pest

Read More

🏘 Homeowners Turn to Smart-home Tech in Pandemic ☘ Hoey Team ☘ exp Realty 🌴 Southwest Florida 🍀

March 30, 2021  One in four Americans purchased a smart-home device in 2020, according to a new survey from SafeWise, a firm that offers safety solutions and resources for the home. The

Read More

📢 Florida Realtors Will Oppose Bill to Dilute Housing Trust Funds ☘ Hoey Team ☘ exp Realty 🌴 Southwest Florida 🍀

Fla.’s House speaker and Senate president proposed a permanent two-thirds decrease in the state’s affordable housing trust funds. Florida Realtors immediately objected.TALLAHASSEE, Fla.

Read More

📣 Small-business Loan ‘Lifeline’ Extended ☘ Hoey Team ☘ exp Realty 🌴 Southwest Florida 🍀

If your business continues to feel the effects of the pandemic, you now have an additional two months to apply for a loan through the Small Business Administration’s Paycheck Protection.

Read More