Hurricanes Helene and Milton could exacerbate already exorbitant property insurance prices by driving up the cost of something else: reinsurance
Insurers purchase policies from reinsurance companies to cover major losses in the event of an unanticipated disaster — or two.
Reinsurance rates soared in 2023 amid inflation and after a series of disasters including Hurricane Ian, which caused $65 billion in insured losses when it struck Florida in 2022. Higher reinsurance prices in turn pushed property insurers to hike premiums and purchase less coverage.
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While reinsurance prices started to stabilize in 2024, the double-whammy effects of Helene and Milton are now dashing hopes of relief for insurers and policyholders alike.
