Hurricane Dorian Could Cost the Reinsurance Sector Billions

The costs of Hurricane Dorian could be $25 billion according to UBS, and the storm still hasn’t made landfall on the US mainland.

Dorian, which is the second-strongest Atlantic storm on record, (see graphic above from RMS, showing wind speed concentration) hit the Bahamas  yesterday, and is predicted to move slowly towards the east U.S. coast, where authorities have evacuated more than a million people from Florida, South Carolina and Georgia.

There’s some interesting analysis of the potential damage and the track of Dorian on the BMS Group site here by the way.

The financial press is reporting that Swiss Re, Lancashire and Beazley have some exposure to losses and claims arising from Dorian, assuming it does make landfall in Florida and the impact isn’t just the initial wind damage, but subsequent flooding from heavy rains and a storm surge hitting coastal resorts, marinas etc.

The latest predictions are that Dorian will brush the cost of Florida and head North and if so, the Reinsurance sector will breathe a collective sigh of relief.

 

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