Hurricane

The analytics firm said that the majority of insured losses will be attributable to wind.

The Florida hurricane season still has three months to run in a predicted above-average year.

Outside the cat bond segment, Aon said it was observing rising sidecar interest, putting volumes at $7.1bn from $6.4bn the prior year.

Karen Clark & Company said the majority of insured losses will incur from US wind and storm surge damage, apart from just under $5mn which was attributed to winds across the Caribbean.

Hurricane Idalia is still live, but the storm’s track reassured market participants that it will be a relatively minor loss.

Idalia might add further aggregate erosion to several cat bonds covering various perils over an annual risk period, it stated.

Moody’s said most losses from Idalia are likely to arise from homeowners and commercial property lines.

The figure – which is not a loss estimate – would be consistent with early views of a sub-$10bn insured loss.

With Hurricane Idalia’s landfall underway loss estimates are uncertain, but sources noted that the storm’s trajectory shows it taking the best path to impact minimal insured values in Florida.

The storm will weaken further, but remain a hurricane as it passes through Georgia and the Carolinas.

The update projections for wind only show a 20% likelihood of losses approaching $11.7bn.

More than 800,000 houses could be affected by the hurricane’s storm surge.