Hurricane Milton Tests the Revamped Plumbing of the Insurance Market

Hurricane Milton has significantly impacted families, properties, and businesses. Within the intricate insurance sector, the repercussions are not entirely straightforward. As assessments of potential insured losses solidify, the spectrum of potential outcomes for the insurance industry becomes more defined. Currently, initial estimates suggest that a substantial portion of Milton's insured damages will be absorbed by reinsurers, with a lesser degree of impact on primary insurers. These conditions are not expected to lead to substantial losses for catastrophe bonds, which are specialized investments designed to shoulder risk during extreme events.