Huge Insurance Companies Face Crippling Losses From Hurricanes
Hurricane season starts next week. Some large insurers that posted huge osmosis due to storms last year could face ceiling losses again. The NOAA expects 2025 to be a dangerous hurricane season.
Hurricanes Milton and Helene caused $34 billion in insured losses last year. The future reached as high as $100 billion in addition to other losses from smaller storms. This was the fifth year in a row that losses of this size occurred.
Huge Storms, Fires
According to CNBC, the insurance company’s troubles have been worsened by wildfire claims, tornado storms, and hail that damaged areas in the country’s middle. “Reinsurance (insurance for insurance) costs for severe convective storm losses are at a 20-year high and, coupled with limited availability, it is leaving insurers hamstrung and unable to transfer most of their mounting losses.”
In some cases, insurance companies are leaving states. And, these state governments often become the insurer of last resort. But, states are running out of money. Insurance business magazine reports, “Florida Gov. Ron DeSantis has said that state-backed Citizens Property Insurance is “not solvent” and could be in trouble if a storm hits the state.”
These trends may ultimately mean that some residents and businesses that suffer property damage because of the weather will have nowhere to turn.
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