NEW YORK (EFE).— Claims for damages after the passage of Hurricane “Milton” along the coast of Florida would have an impact on insurance of between 50,000 and 60,000 million dollars, according to calculations by the industry, which is prepared to absorb that blow, according to the different estimates released yesterday.
However, this cost will have repercussions on the global insurance industry, says “Insurance Business” magazine, which takes the figure to 60 billion.
“Milton” crossed Florida between Wednesday and Thursday, leaving in its wake serious flooding due to rain and storm surge, destruction, hundreds of thousands of people displaced and at least 13 dead.
According to RBC Capital analysts, it is believed that the losses would be comparable to those of Hurricane “Ian”, which hit Florida in 2022, and places “Milton” as one of the most expensive.
But they believe the industry can absorb the impact based on improved reinsurance contracts, diversified profits and stronger financial reserves, the magazine highlights.
Barclays analysts projected, for their part, that “Milton” losses for insurers would exceed $50 billion.
Insurance companies faced losses from these types of incidents in recent years, which resulted in them and reinsurers (who offer insurance to insurers) raising their prices and tightening conditions for higher risk properties.
At a glance
Drop
According to “Insurance Business” magazine, the shares of global reinsurers such as Swiss Re, Munich Re and Lloyd’s of London, Beazley, Hiscox and Lancashire, have fallen in recent days. RBC believes that share prices will recover when they increase the reinsurance rate.
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