Insurers got zapped this year. Specifically, third quarter storms accounted for 21.3 billion in insured property insurance. Insurance payed out $24.7 billion for the first nine months of 2004. This years first nine months losses is second only to 2001's first nine month losses of $26.1 billion. Majority of losses incured during 2001 is mostly do to 9/11 terrorist attacks.
This year four major hurricanes in Florida accounted for $20.5 billion-a bit more then the $20.3 billion loss caused by Hurricane Andrew in 1992. The frequency of catastrophic storms in a given 40 day time frame is very unusual and were far from the calculation of premiums.
However, there have been very few insurance insolvencies, indicatina that the market will remain strong, and be able to rebound from this storm season.
With such catastrophic losses the demand of storm insurance will likely climb as well as the premiums. Although insurance companies as a whole were able to absord such a catastrophic third quarter, the likelyhood that insurance companies will be able to absord a similar blow in the near future without some major changes in premiums is highly unlikely.