Hurricane Debby losses to largely fall within reinsurance retentions: Moody’s
- June 20, 2025
- Posted by: Kane Wells
- Category: Insurance
The majority of insured losses from Hurricane Debby are anticipated to fall within primary insurers’ retentions under their reinsurance coverages, as per James Eck VP-Senior Credit Officer, Financial Institutions Group at Moody’s Ratings.
Hurricane Debby is the second hurricane to form in the Atlantic basin this season, having recently made landfall in the Big Bend area of the Florida Panhandle as a category 1.
According to Moody’s, Debby is expected to bring catastrophic flooding from storm surge along the Gulf Coast of Florida as well as extremely heavy rainfall across portions of Florida, Georgia and South Carolina over the next several days.
“We expect a majority of insured losses from Hurricane Debby to fall within primary insurers’ retentions under their reinsurance coverages,” the aforementioned James Eck added.
He continued, “In general, primary insurers are retaining more risk this hurricane season as attachment points – the threshold at which a policy begins to cover a loss – have moved higher over the past few years, with primary companies taking on more of the loss burden from reinsurers for small to midsize catastrophe events.”
Sarah Hartley, Director of Moody’s RMS Event Response (separate from the credit rating agency) noted, “Debby is expected to slow down and gradually track into Northern Florida and the Southeast U.S., bringing the potential for excessive rainfall and flooding.
“Latest forecasts suggest up to 30 inches of rain, particularly in Georgia and South Carolina, which could challenge recent historical precedents in those states. Debby’s hurricane-force winds, storm surge, and heavy rainfall could have localized impacts in the Gulf Coast region.
Debby’s forecast winds, rainfall, storm surge and the associated risk of tornadoes highlight the multifaceted nature of hurricane-related risks facing insurance industries.”
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