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According to estimates by the UBS bank, based on some data collected last Monday, August 28 the passage of Hurricane Idalia on the Gulf Coast could cost Florida insurers billions of dollars.
In this sense, it is expected that insurance claims by those affected reach an average of $9,360 million dollars. In general calculations, Idalia covers a cost of 10 billion dollars.
According to Thomas Hayes, president and managing member of Great Hill Capital LLC in New York, “historically, what happens when there are these hurricanes is that everyone worries about liability after the hurricanehe told Reuters.
After passing through Florida, it left a great flood that puts uphill the work of the emergency teams that quickly move to attend to the residents trapped in their homes. Now the hurricane that reached category four moves as a tropical storm towards Virginia towards the Atlantic for the afternoon of this Thursday.
Will it be a good time for insurers?
However, the imposing winds of up to 130 mph with strong waves and torrential rains come at a challenging time for the insurance industry and can result in higher premiums, coupled with the fact that since July 1, reinsurers also increased their rates on key types of coverage by up to 50%.
Given this situation, the spokesman for Citizens Property Insurance, Michael Peltier, assured that the company currently has good capital to finance the claims of its policyholders whose properties have been damaged by the Idalia crossing. “There is no problem with us paying the claims to the policyholders,” he stressed.
But, not all show the same security, due to the high hurricane season in the state of Florida, many insurance companies have considered ceasing their operations. “This business decision was necessary to effectively manage risk exposure“, a spokesperson, Farmers.
Given this, in July the Florida Office of Insurance Regulation received a notification from Farmers about its decision to no longer offer insurance policies in the state.
Keep reading:
- Hurricane season: How do you know if your insurance is enough?
- Were you affected by the storms? This state offers loans of up to $2 million dollars to its residents, find out what it is about
- Images showing flooding and damage after Hurricane Idalia passed through Cuba and Florida