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Hurricane Ian set to cost insurers £27-36bn

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ATLANTIC OCEAN - SEPTEMBER 1: In this NOAA GOES-East satellite handout image, Hurricane Dorian, now a Cat. 5 storm, tracks towards the Florida coast taken at 13:20Z September 1, 2019 in the Atlantic Ocean. A hurricane warning is in effect for much of the northwestern Bahamas as it gets hit with 175 mph winds. According to the National Hurricane Center Dorian is predicted to hit the U.S. as a Category 4 storm. (Photo by NOAA via Getty Images)

The category 4 storm Hurricane Ian that hit the southwest coast of Florida earlier this month is set to cost insurers $30- 40bn (£27- £36bn), according to new analysis from S&P Global.

However, US insurers are currently well positioned to absorb losses in having sufficient reserves to weather any financial hit, the ratings agency said in a new report.

Hurricane Ian hit the Fort Myers metro region of southwest Florida on 28 September killing at least 30 people.

The hurricane, which saw wind speeds of up to 155mph, had a significantly larger footprint than previous hurricanes, whilst causing storm surges of 12-18 feet.

The fact Hurricane Ian hit the heavily populated Fort Myers area also heightened the level of damage the storm caused.

The US insurance sector is however well positioned to pay out on claims, due to it being the first major hurricane of the year, meaning any losses should fall within annual catastrophe budgets.

Yet catastrophe budgets will likely be fully expended or surpassed by the end of the year, S&P Global said.