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KCC’s flash estimate for Hurricane Michael includes losses to residential, commercial, and industrial properties as well as automobiles.
The early estimate chimes with industry figures who privately estimated a $5bn-$10bn loss bill in the hours leading up to the Cat 4 storm making landfall, as reported by re-Insurance on 10 October.
It also chimes with the share price reaction of Florida-exposed stocks which was generally muted.
The KCC loss estimate does not It does not include losses to the federal National Flood Insurance Program (NFIP).
Michael, the third-strongest storm in recorded history to hit the mainland US, slammed into the US Gulf coast on Wednesday, causing damage to property and business.
The storm hit north-west Florida with winds in excess of 140mph and over 10ft storm surge, bringing down trees, and flooding coastal areas.
The majority of losses will come from storm-hit Florida and Georgia, the firm said.
KCC estimates that nearly one half of the $8bn insured loss from Hurricane Michael occurred in two Florida counties – Bay and Gulf.
Total damages from storm surge alone are expected to reach $3.7bn, according to KCC, of which about ten percent will be insured.
Broker Willis Towers Watson said that while hurricane Michael may have a short-term impact on the sector, it is “not expected to be market moving”.
Earlier this week, property mapping firm CoreLogic estimated that up to 57,000 homes with a reconstruction value of $13.4bn are exposed to storm surge from Hurricane Michael.
But it adds to a H2 loss bill which includes Typhoon Jebi and also the $700mn German shipyard loss (see table).
US giantState Farm is the largest homeowners insurer in Georgia, controlling 27.7 percent of the market across the state, according to data from AM Best.
The insurer is also the dominant force in the smaller Alabama homeowners market assuming 28.2 percent of the $1.69bn market.
Universal Insurance dominates a tenth of the larger $8bn homeowner’s market in Florida.
It was the hardship posting to end all hardship postings. British officers went quite literally round the bend to get there, writes Matthew Teller, and perhaps sometimes metaphorically too. In 1863 Britain was looking to strengthen its control over the Gulf. The eager new ambassador to the region, Political Resident ...
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