Hurricane Ian likely to bring incurred losses in US fire and natural hazards market to near record level, says GlobalData

October 10, 2022
GlobalData

Following the news that Hurricane Ian, a devastating category four storm, has swept through Florida overnight; Benjamin Hatton, Associate Insurance Analyst at GlobalData, a leading data and analytics company, offers his view:

"Hurricane Ian comes after a series of adverse weather events in the US during 2022 and, as one of the strongest hurricanes the region has felt in years, it is likely to cause billions of dollars' worth of losses. Combined with the losses from earlier in the year, Hurricane Ian is likely to leave insurers with their largest incurred loss since at least 2017 when a series of devastating hurricanes and wildfires took their toll on the country. That year incurred losses in the fire and natural hazards line reached almost $25 billion, with a loss ratio comfortably over 90%.

"According to GlobalData's report, 'Climate Change and its Impact on Insurance Market – Thematic Research', the US gross written premiums for fire and natural hazards insurance was over $58 billion in 2020, more than twice the amount of Japan, which was the second highest.

"As damaging as the effects of natural disasters can be, insurance uptake across the US tends to be relatively high. Insurance will continue to provide that vital safety net for both consumers and businesses in disaster-prone areas.”



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