Hurricane Milton Threatens $100 Billion Insurance Blow

Hurricane Milton, a Category 5 storm, could result in up to $100 billion in insured losses for the global insurance industry, impacting reinsurance prices. Expected to hit Florida, Milton's damage could parallel Hurricane Katrina's devastation, as insurers adjust rates in response to increased natural disasters.

Hurricane Milton, anticipated to slam the Gulf Coast of Florida, could wreak up to $100 billion in insured losses, posing a massive challenge for the global insurance industry. Analysts suggest this Category 5 storm may raise reinsurance prices, potentially benefiting some insurance firms' stock values.

Morningstar DBRS analysts project Milton's damage could align with Hurricane Katrina's $100 billion impact, especially if it strikes the densely populated Tampa area. An estimated loss akin to Hurricane Ian's $60 billion toll in 2022 should be manageable, according to RBC analysts.

Lloyd's of London already anticipated such devastation in its Realistic Disaster Scenarios, predicting a $134 billion loss for comparable events. With rising natural disaster risks, ascribed partly to climate change, insurance companies respond by adjusting rates and diversifying earnings.

(With inputs from agencies.)