Hurricane

The estimate includes wind loss, re-evaluated insured and uninsured storm surge loss and newly calculated inland flood loss for residential and commercial properties.

As of October 4, Fema has received more than 25,000 claims and pushed out over $3.5mn in advance payments in Hurricane Ian affected states.

Hurricane Ian could present a challenge for ILS fundraising conversations this autumn if ILS firms do not find more financing solutions to manage trapped capital, according to panellists at Trading Risk New York 2022 last week.

The industry’s performance was running ahead of last year as of end of August.

The loss estimate does not include litigation or claims below the deductible.

The cat bond market has a high level of exposure to Florida wind risk.

KCC has added a loading for litigation costs to the storm loss estimate for the first time.

The Swiss ILS specialist pointed to potential impacts on Floodsmart, Florida indemnity and index-linked bonds.

The broker’s global head of catastrophe management Dan Dick said that a realistic view on Ian’s loss suggests it would remain an earnings event for (re)insurers.

RMS pushed the guidance for the Carolinas component of the Ian loss $120mn higher at the mean level up to $1.94bn, as it updated figures on Saturday in private figures to clients.

Constraints in rebuilding supplies and contractors, inflation and post-event litigation will be key loss amplification drivers.

Most of the losses will come from wind damage, while storm surge and inland flooding could account for up to $6.5bn in total.