Water, wind, and wildfire. It’s been a devastating three months for the U.S.
Total insured losses from Hurricanes Florence and Michael, and the Camp and Woolsey wildfires are estimated by RMS in the range US$18.6 billion to US$28 billion (see table below):
|September 1||Hurricane Florence||$2.8 – $5.0 billion|
|October 8||Hurricane Michael||$6.8 – $10.0 billion|
|November 8||Camp Wildfire||$7.5 – $10.0 billion|
|November 8||Woolsey Wildfire||$1.5 – $3.0 billion|
|TOTAL INSURED LOSSES||$18.6 – $28 billion|
While California wildfires may seem far removed from Atlantic storms, for capital markets investors the fires may make the difference to how 2018 is remembered. Insurance Linked Securities (ILS) eyes are now trained on multi-peril aggregate catastrophe bonds.