Rating agency and financial analysis firm, Demotech, Inc., has reported that, at this stage, all of the Florida-focused insurance carriers it rates will be able to handle claims from hurricane Ian within their reinsurance towers, based on early reporting and cat modelling results.
Of course, the ultimate insurance and reinsurance industry loss from Ian will take time to be fully understood, and estimates out in the market are fairly broad, extending above the $70 billion mark.
Over the last few days, a number of carriers have released their loss estimates for the storm, and it’s clear that reinsurers are set to shoulder a fair share of the total industry loss.
This includes, Heritage, United Insurance Holdings, Progressive, and Universal Insurance Holdings, and with Q3 results season nearing, it’s expected that more Ian losses will be announced in the coming days and weeks.
In light of Ian’s impacts in the State of Florida, Demotech has commented on its financial stability rating reviews of Florida-focused firms, stating that it continues to review, analyse, and evaluate the operating results and losses reported by carriers.
“The efficacy of catastrophe reinsurance programs, disaster recovery plans, and catastrophe response plans is being validated,” said Joseph, Petrelli, President and Co-founder of Demotech.
“Although we cannot share material non-public information, we are pleased to report that, as of this date, based upon catastrophe modeling results and the early reporting of claims associated with Ian, each carrier reviewed and rated by Demotech is within their vertical reinsurance tower,” he continued.
So, based on the information available, Demotech currently feels that within its universe of Florida-focused carriers, the firms’ reinsurance coverages are sufficient to handle claims related to hurricane Ian.
The rating agency adds that once Q3 financial results have been reviewed, it will share its perspective with the carriers.
