- Hurricane Dorian’s trajectory has shifted away from Florida and now bears a close resemblance to Hurricane Matthew, a category five storm that devastated Haiti and the southeastern United States in 2016.
- According to UBS, if Dorian continues following Matthew’s path, it could cost insurers $US4.5 billion.
- UBS predicted earlier this week the storm could cost insurance companies more than $US25 billion, but it’s since reduced its forecast.
- Dorian has already surged through the Bahamas leaving at least 20 people dead. The storm has now begun to hit Georgia, North Carolina, and South Carolina.
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Hurricane Dorian is charting a new path, and it could cost insurance companies billions in payouts.
According to UBS, Dorian’s trajectory has shifted away from the coast of Florida and now bears a similar resemblance to Hurricane Matthew, a tropical storm that sparked a humanitarian crisis in Haiti and devastated the southeastern United States in 2016.
“Based on current forecasts, Hurricane Matthew appears to be the most comparable recent event,” UBS said in a note to clients on Thursday. “Matthew caused an estimated $US4.5 billion in industry losses across FL, GA, NC, SC and VA, as well as $US400 million in the Bahamas.”
Dorian has already devastated the Bahamas, leaving at least 20 people dead as the storm battered through the islands. The storm was expected to hit the coast Florida, but has since shifted its path toward the coast of Georgia, North Carolina, and South Carolina.
Allstate has written more than $US757 million in premiums throughout Georgia and the Carolinas, while Travellers oversees around $US379 million, according to UBS.
Earlier this week, UBS said Dorian could cost the insurance industry more than $US25 billion if storm hit the coast of Florida. The firm also said the two-year gap between Dorian and Hurricane Maria allowed re-insurers to build up around $US30 billion in reserves.