Global: Hurricane Ian insured losses could touch $74bn
Source: Middle East Insurance Review | Nov 2022
RMS has estimated total private market insured losses from hurricane Ian to be between $53bn and $74bn, with the best estimate of $67bn. RMS also estimated that the National Flood Insurance Program (NFIP) could see an additional $10bn in losses from storm surge and inland flooding as a result of the event.
The overall industry loss estimate for Ian includes wind and storm surge losses in Florida, South Carolina, North Carolina, Georgia and Virginia, based on an analysis of ensemble footprints in version 21 of the RMS North Atlantic Hurricane Models. RMS ensemble footprints are reconstructions of Ian’s hazard that capture the uncertainties surrounding observed winds and storm surge.
The RMS estimate reflects losses from property damage, contents and business interruption across residential, commercial, industrial, automobile, infrastructure, watercraft and other specialty lines.
RMS expects the majority of total insured losses from Ian to be driven by wind. However, a sizeable portion (up to 25%) of the total insured losses (including NFIP) will be driven by surge and flood. While insured wind losses and losses to the NFIP will be driven by residential lines, surge and inland flood losses to the private market will be dominated by commercial, industrial and automobile lines. M