A double hurricane in Florida magnified Nicole’s losses – International Insurance News



Insured losses from Hurricane Nicole, which made landfall in Florida earlier this month, could reach nearly $2 billion ($3 billion) as impacts are exacerbated by the devastation wrought recently by the most powerful Hurricane Ian. , according to risk modeling firm RMS.

Category 1 Hurricane Nicole, which swept across the coast on Nov. 10, brought high winds and heavy rain to many areas affected by Ian, compounding the effects of labor, material and equipment shortages. adjusters, in an effect described as post-event loss amplification (APL).

“Historically, an event of the magnitude of Hurricane Nicole would not present noticeable impacts on the PLA if it were to occur on its own. However, the fact that it closely follows a major event with Hurricane Ian means the same factors influencing Ian’s PLA also apply to Nicole,” said Sarah Hartley, event response manager.

Privately insured losses from wind, storm surge and rain-induced flooding are expected to reach US$1.3-1.9 billion ($1.9-2.8 billion), with a best estimate of US$1.6 billion ($2.4 billion), while losses covered by the National Flood Insurance Program are estimated at $300 million ($449 million).

Although Nicole was much less intense than Ian, there was a large wind field and RMS event response teams estimate that approximately 98% of the ZIP codes in Florida affected by the event were previously affected by Ian, Staff Product Manager, North Atlantic Hurricane Models Jeff Waters said.

“We expect the overlapping nature of Hurricanes Ian and Nicole to introduce significant uncertainties into the loss attribution and claim settlement process,” he said.

Hurricane Nicole was the fourteenth named storm of the North Atlantic hurricane season, the eighth hurricane, and the second to make landfall in the United States.

Ian swept across the west coast of Florida on September 28 as one of the strongest hurricanes to ever make landfall in the United States. In early October, RMS said privately insured losses could range from $53 billion to $74 billion ($79 billion to $111 billion), with a best estimate of $67 billion ($100 billion).

The Atlantic hurricane season officially ends on November 30.

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