Reinsurance News

Hurricane Ian likely to cause $65bn of loss in Florida alone: RMSI

29th September 2022 - Author: Kane Wells

According to global GIS and geospatial technology company RMSI, Hurricane Ian is set to cause $65bn of economic losses in Florida as it continues its path across the state.

Hurricane Ian over the Gulf of Mexico at 4:26pm on September 27th. Source: NOAA via AP

Hurricane Ian made landfall on Wednesday as a major Category 4 storm with maximum sustained winds of around 155 mph near the Cayo Costa area.

It brought widespread flooding, property damage, and power outages, leaving residents stranded as storm surges flooded communities.

2.5 million residents in Florida have been left without power, and 12- to 18-foot storm surges have been reported near Fort Myers, damaging hospital roofs and pointing to significant losses that should reinforce reinsurance demand while eroding reinsurance capital.

Ian is being stated as the fifth-strongest hurricane with a measured wind speed to strike US.

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The report added, “Our Initial assessment indicates that about 500,000 buildings are estimated to be damaged. These buildings comprise of residential, commercial, industrial, educational and other essential buildings.”

RMSI’s graph below shows the distribution of the estimated damage as per occupancy type.

This is the first post-landfall estimate of economic losses we’ve seen since the beginning of the event.

Hurricane warnings are in effect for Chokoloskee to the Anclote River, including Tampa Bay, Sebastian inlet to Flagler/Volusia county line. Tropical storm warnings are also in effect for Indian pass to the Anclote River, Boca Raton to Sebastian Inlet, Bimini, and Grand Bahama Islands.

The National Hurricane Center expects Ian (now a tropical storm) to move northeastward across central Florida and into the Atlantic Ocean before veering westwards and hitting South Carolina by Friday afternoon.

State of emergencies have been issued in Georgia, Virginia, and the Carolinas as experts warn that the dangers from hurricane Ian still persist.

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