News Americas, New York, NY, October 9, 2024: Hurricane Milton, which caused widespread destruction in parts of Florida on the night of Wednesday, October 10, is expected to reshape the future of the property catastrophe insurance market, according to industry experts.
Chris McKeown, CEO of ILS reinsurance and innovation at Vantage Risk, believes the storm marks an important moment for Florida’s already fragile insurance industry, which has faced premium increases and insurer departures for years.
“This is an unprecedented large storm that defies many meteorological expectations,” McKeown said at the ILS Bermuda Convergence 2024 Conference according to reports in the Royal Bermuda Gazette. He explained that Hurricane Milton, which at times was classified as a Category 5 storm, will be a major event for both Florida residents and the state’s insurance industry. The hurricane, he added, underscores the growing challenges insurers face in covering losses as federal bailouts and underinsurance remain critical issues.
McKeown pointed out that early hurricane forecasts are of limited value to insurers, as they often arrive too late in the year to influence policy decisions. “Hurricane Milton is another reminder of the importance of securing sufficient capital to cover risk and how unpredictable these events have become,” he said.
Mosaic Insurance co-founder and co-CEO Mark Wheeler echoed these concerns, noting that the insurance industry is evolving to handle complex risks, but faces challenges to stay relevant. “The industry is in good shape overall, but we have to adapt to emerging risks like cyber and environmental disasters,” Wheeler said, pointing to growing demand for specialty insurance products and managing general agencies in the US.
