Hurricane

Reinsurance market sources expected Hurricane Michael to cause insured industry losses of $10bn, but the limited number of public loss estimates released to date suggest Florida insurers are hoping it will remain below this level.

Hurricane Michael is likely to have triggered Floridian window industry loss warranties (ILWs), sources told Trading Risk. The window covers typically attach at ranges between $2bn-10bn and $7bn-15bn, covering Florida wind risks only.

Florida insurers reported manageable catastrophe losses in the third quarter. However, Irma loss creep continued to mount for some, as questions arose over potential coverage gaps following collateral release.

The (re)insurer said its estimate is consistent with industry insured losses of roughly $10bn.

The October storm is likely to result in economic losses of $15bn.

The company has closed about 95 percent of claims, CEO Michael Herbert said.

The reinsurer’s gross cat losses have surpassed EUR500mn for the year.

HCI Group's gross losses from Hurricane Irma have stayed stable in the third quarter.

It will take an additional EUR350mn in Q4 from Trami and Michael.

It has released further sums of capital further up its programme.

The firm warned that it expected continuing industry adverse development into 2019.

The insurer said it had no issue with “gaps” in its prior-year reinsurance cover for Irma.