Isaias insured losses could reach low to mid-single-digit billions: Gallagher Re

Insured losses from Tropical Storm Isaias could reach the low to mid-single-digit billions of dollars if the storm makes landfall as a hurricane, according to Gallagher Re.

Insured losses include private insurance carrier and National Flood Insurance Program gross claims payouts. Economic losses, according to Gallagher Re, would therefore reach a few billion dollars more.

However, the broker said the extreme weather event was unlikely to “meaningfully” affect the upcoming reinsurance renewal discussions for 1/1.

Tropical Storm Isaias, currently developing in the Gulf of Mexico off the states of Louisiana, Mississippi, Alabama and the Florida Panhandle, is forecast to become a hurricane later today (Thursday, October 8).

Isaias is expected to reach Category 1 or 2 status and make landfall Friday October 9, bringing hurricane-force winds, up to 5 to 7 feet (1.5 to 2.1 metres) of coastal storm surge, flooding, rainfall and the threat of tornadoes in the storm’s outer bands in parts of the affected states.

Isaias will be the first tropical storm to reach hurricane status for the 2026 Atlantic season and the latest forming hurricane in the season on record.

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