Helene and Milton insured losses estimated at up to $55bn

Hurricanes Helene and Milton will cost private re/insurers between $35 billion and $55 billion, according to Moody’s RMS. 

Moodys’ RMS said it last week estimated insured losses from Helene at $8 billion and $15 billion. It expects to release its final estimate for Milton, which caused widespread damage in Florida as a Category 3 hurricane on October 9. 

Helene made landfall two weeks ago in the Big Bend area of Florida and caused massive flooding damage in western North Carolina. However, much of that damage was uninsured. 

“This initial combined loss estimate is informed by Moody’s RMS Event Response’s rigorous approach to event insured loss estimation and includes a combination of observational data, detailed field reconnaissance so far spanning more than 2,000 miles, and aerial imagery analyses from both storms in the affected region. 

“Our reconnaissance teams are in Florida right now, and continue to survey the impacted areas. Estimating losses in these events is challenging and it is important to consider all associated complexities and uncertainties, especially in the overlapping regions affected by both hurricanes.” 

Moody’s RMS said these uncertainties were  complex hazard patterns,  including tornadoes, “coverage leakage” across Helene and Milton, event attribution and damageable exposure, which included the fact that buildings damaged in Helene and Ian in 2022 may reduce potential exposure in Milton. 

“Each factor may influence and potentially prolong the claims settlement for the two storms, Hurricanes Milton and Helene.” 

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