UBS expects Hurricane Idalia to result in insured losses of $9.36 billion based on preliminary estimates, the brokerage said in a note on Wednesday, as destructive winds and rain lashed coastal Florida, Reuters reported. Idalia made landfall in the state as an "extremely dangerous" Category 3 storm yesterday after millions of residents evacuated or hunkered down in homes and shelters. UBS estimates a 50% chance of losses of over $4.05 billion and a 10% likelihood of losses of $25.6 billion, based on Aug. 28 data. The wide range accounts for potential changes in the storm's intensity and path. At about $10 billion, Idalia would cost insurers less than 10 of the costliest hurricanes to hit the United States. UBS said it expects reinsurers to absorb a meaningful amount of the loss at the upper end of the current range. Global insurers are facing a challenging 2023 as reinsurers hiked rates on key types of coverage by as much as 50% from July 1, blaming sharp losses from the Ukraine war and increasing wildfires and hurricanes hitting states such as California and Florida.
