Cotality estimates Hurricane Isaias insured losses at $2 billion to $3 billion
By Michael Loney Oct 12 (The Insurer) — Cotality has estimated industry-wide insured wind and storm surge losses from Hurricane Isaias at $2 billion to $3 billion, with most losses expected in the Florida Panhandle and southern Alabama. Isaias made landfall near Destin, Florida, at about 8:30pm CDT on Friday October 9, with the center about 40 miles east of Pensacola and 50 miles west-northwest of Panama City. Property analytics company Cotality — which rebranded from CoreLogic in March last year — said Isaias had maximum sustained winds of 105 mph at landfall, making it a Category 2 hurricane. Forecasters had called for peak storm surge of 6 to 9 feet from the Alabama-Florida border to Grayton Beach and 4 to 7 feet from Grayton Beach to Indian Pass, Cotality said. Isaias weakened quickly after landfall and became a post-tropical cyclone over Alabama on Saturday. Cotality on Monday said that “flooding remains the main lingering threat.” Gallagher Re said on Friday as Isaias moved closer to landfall that insured losses were likely to be in the mid single-digit billions of dollars based on the storm’s projected path and strength at that time. BMS Group on Friday before landfall esti
By Michael Loney Oct 12 (The Insurer) — Cotality has estimated industry-wide insured wind and storm surge losses from Hurricane Isaias at $2 billion to $3 billion, with most losses expected in the Florida Panhandle and southern Alabama. Isaias made landfall near Destin, Florida, at about 8:30pm CDT on Friday October 9, with the center about 40 miles east of Pensacola and 50 miles west-northwest of Panama City. Property analytics company Cotality — which rebranded from CoreLogic in March last year — said Isaias had maximum sustained winds of 105 mph at landfall, making it a Category 2 hurricane.
Forecasters had called for peak storm surge of 6 to 9 feet from the Alabama-Florida border to Grayton Beach and 4 to 7 feet from Grayton Beach to Indian Pass, Cotality said. Isaias weakened quickly after landfall and became a post-tropical cyclone over Alabama on Saturday. ” Gallagher Re said on Friday as Isaias moved closer to landfall that insured losses were likely to be in the mid single-digit billions of dollars based on the storm’s projected path and strength at that time. BMS Group on Friday before landfall estimated insured losses of $4 billion to $6 billion from Isaias.
According to a preliminary estimate from AccuWeather released on Monday the storm caused an estimated $16 billion to $20 billion in total damage and economic loss across the Gulf and the eastern US. Evelyn Ocas Salazar, vice president, financial institutions at Moody’s Ratings, in a statement said she expects regionally focused carriers will be most affected. Insurers most exposed to the storm include the top 10 Florida-only insurers (defined as having at least 70% of their homeowners and commercial property premiums written in Florida), which write about 47% of the state's homeowners business and are more vulnerable than others given their geographic concentration.
Florida insurer of last resort Citizens Property Insurance Corporation is the largest Florida-only insurer. “While Citizens has significant exposure along the state's coastline, the company is less concentrated in the Florida Panhandle,” Salazar said. “Insurers will likely retain a significant share of the losses from the storm, although it will depend on the underlying primary insurance coverages and the reinsurance contracts. ”