Today’s report titled, “No Respite For Re/Insurers As HurricaneIrma Prepares To Give A Big Jolt,” from S&PGlobal Ratings has bad news for insurers and reinsurers alike.Depending on the extent to which Hurricane Irma makes a landfall inFlorida, there could be much higher insured losses compared toHurricane Harvey. As projected by AIR Worldwide, if a Category 5,Andrew-like hurricane were to strike just south of Miami and alittle north of the city of Homestead, the total insured losses forFlorida could reach upward of $130 billion.

“Strong capitalization will help mitigate the impact, but Irmawill likely stress-test not only the re/insurers but also thestaying power of third-party capital,” said S&P Global creditanalyst Hardeep Manku. “Regional pricing is also likely to harden,but the impact on global re/insurance pricing is debatable,” headded.

While tallying losses to date from Hurricane Harvey,the re/insurance sector is likely to have little respite asHurricane Irma is shaping up to cause a fargreater hit to lives and homes than Hurricane Harvey.

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Rosalie Donlon

Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU You can contact her at [email protected].