October 10, 2024 – ECNETNews: Hurricane Milton has unleashed widespread devastation across Florida, prompting significant implications for the property catastrophe insurance market, according to industry experts.
Chris McKeown, CEO of Vantage Risk, indicated that the storm represents a critical juncture for Florida’s beleaguered insurance industry, which has been grappling with escalating premiums and the exit of insurers in recent years.
“This unprecedentedly large storm defies many meteorological expectations,” McKeown remarked at a recent conference. He noted that Hurricane Milton, at times classified as a Category 5 storm, would greatly impact both Florida residents and the state’s insurance framework. The hurricane highlights ongoing challenges for insurers, particularly concerning federal aid and the issue of underinsurance.
McKeown further emphasized that early hurricane predictions hold limited value for insurers, as they often emerge too late to affect policy decisions. “Hurricane Milton serves as a reminder of the vital importance of securing adequate capital to cover risks, illustrating the unpredictable nature of these events,” he stated.
Mark Wheeler, co-founder and co-CEO of Mosaic Insurance, shared similar concerns, underscoring that while the industry is generally stable, it must evolve to address complex risks. “The insurance sector needs to adapt to emerging challenges such as cyber threats and environmental disasters,” Wheeler stated, pointing to the increasing demand for specialized insurance products in the U.S.
