Hurricane Isaias May Cost Insurers Billions

AI Summary

Hurricane Isaias could cause insured losses in the single-digit billions, though stronger Florida building codes may limit damage. An insurance analyst says recent mild seasons have helped insurers rebuild capital, while Florida reforms have improved conditions but remain untested by a major storm.

Bloomberg Intelligence Senior Insurance Equity Analyst Matthew Palazola tells Bloomberg This Weekend that Hurricane Isaias could generate insured losses in the single-digit billions of dollars, with stronger Florida building codes potentially limiting damage despite rising property values. Speaking with hosts David Gura and Christina Ruffini, Palazola says two relatively mild hurricane seasons have helped insurers rebuild capital, while recent Florida insurance reforms have improved market conditions but have yet to face a major test. (Source: Bloomberg)