Hurricane Milton privately insured loss estimated close to $36bn: KCC

Karen Clark & Company (KCC) has estimated that the privately insured loss from Hurricane Milton will be close to $36 billion in the US from wind, storm surge, and inland flooding.

This estimate, based on the high-resolution KCC US Hurricane Reference Model, includes the privately insured damage to residential, commercial, and industrial properties and automobiles, as well as business interruption.

However, it does not include boats, offshore properties, or National Flood Insurance Program (NFIP) losses.

Hurricane Milton made landfall on the 9th of October in Sarasota County (Siesta Key) on the east coast of Florida as a Category 3 hurricane, bringing strong winds, heavy rainfall, tornadoes, and storm surges, resulting in loss of life, damage to property and infrastructure, and power outages.

According to KCC, in contrast to Helene, which made landfall along the Big Bend region of Florida two weeks earlier, most of the damage from Milton was caused by wind.

“Therefore, a higher proportion of the damage from Hurricane Milton will be insured,” the catastrophe risk modelling specialist explained.

In related news, a new report from Morningstar DBRS has observed that Hurricane Milton could result in insured losses approaching $60 billion, likely causing the stabilisation of reinsurance prices seen during mid-year renewals to revert to their upward trajectory.

Meanwhile, Moody’s RMS Event Response recently noted that private market insurance industry losses in the US from hurricanes Helene and Milton will fall between $35 billion and $55 billion. RMS additionally warned of complexities and uncertainties surrounding loss estimates given the overlapping regions affected by the two storms.

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