Under certain scenarios, a category 5 hurricane ploughing into Miami or Tampa Bay has the potential to drive more than US $300 billion of losses across the global insurance and reinsurance market, Swiss Re’s Institute said today, while also explaining the importance of reinsurance and ILS capital in protecting the state.
In addition, the research found that a repeat of the 1926 Great Miami Hurricane event, a category 4 storm, has the potential to drive over US $200 billion of industry losses to the re/insurance sector today.
These scenarios illustrate “how population growth and the accumulation of assets in exposed areas are driving higher insured natural catastrophe losses globally,” Swiss Re explained.
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