Helene insured losses will at least be in the higher single-digit billions: Aon

Insurance industry losses from all perils associated with hurricane Helene, across all affected states, will likely at least be in the higher single-digit billions of USD, with economic losses forecast to be notably higher, according to insurance and reinsurance broking group Aon.

Significant financial implications will be felt by much of the southeast US as a result of Helene’s large and powerful wind field, severe storm surge, and catastrophic inland flooding.

After making landfall on September 26th in northern Florida as a Category 4 storm with 140 mph winds, Helene caused large storm surge along numerous parts of the coast, while destructive wind gusts damaged properties from northern Florida to the Carolinas.

Rainfall and inland flooding impacts from Helene were also significant, highlighted by the occurrence of a 1-in-1000-year rainfall event over western North Carolina.

Hurricane Helene claimed the lives of 215 people, making it one of the deadliest US hurricanes this century.

In terms of the insured loss from Helene, as of September 30th, the Florida Office of Insurance Regulation had reported that more than 40,000 claims had already been filed.

“Across all affected states, insured losses from all perils associated with Hurricane Helene will likely reach at least into the higher single-digit billions USD,” says Aon. “However, regions in the southern Appalachian Mountains that saw catastrophic flooding damage also exhibit low public and private flood insurance take-up rates, suggesting a fairly large insurance gap. As a result, economic losses will be notably higher.”

While analysts have suggested that insured losses from Helene, the fourth US Gulf Coast landfalling hurricane of the 2024 season, could stretch into the double-digit billions of USD, currently, the consensus appears to be somewhere between $5 billion and $9 billion.

Yesterday, Karen Clark & Company pegged privately insured losses from hurricane Helene at near $6.4 billion, although this excludes losses to the NFIP, which are expected to be significant and potentially high enough to trigger its catastrophe reinsurance.

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