Steve Bowen, Chief Science Officer at Gallagher Re, now predicts that economic losses will exceed $10 billion, with the impact to the private insurance market falling between mid-to-high single-digit billion dollars. This is a notable increase from the previous estimate of $3 billion to $6 billion.
The storm’s wide wind field and severe flooding caused widespread damage in Florida and Georgia, leading to higher-than-expected losses. While the peak winds missed the most populated areas, the coastal storm surge and inland flooding resulted in significant property damage.
Hurricane Helena Key points:
- Insured losses are expected to be in the mid-to-high single-digit billion dollar range.
- The National Flood Insurance Program (NFIP) is anticipated to face multi-billion dollar losses.
- Storm surge and inundation levels reached new heights in parts of Tampa Bay, Sarasota, Fort Myers, and the Big Bend region.
- Despite the severe impacts, Gallagher Re does not expect a major impact on the broader re/insurance market.
Bowen stated: “Very limited flood insurance take-up in far inland areas is going to mean a large portion of damage will be uninsured. NFIP coverage limits (Residential: $250k structure / $100k contents + Commercial: $500k structure / $500k contents) will in many cases mean properties will not be fully insured against incurred damage.”
He concluded: “The gap between the overall direct economic cost and the portion covered by private / public insurance for Helene will be sizeable; similar to other historical flood-driven hurricane events.”
Hurricane Helene has once again highlighted the vulnerability of coastal regions to extreme weather events and the substantial financial burden they can impose on insurance companies.
