Damage from Hurricane Dorian could be at least $ 25 billion

Hurricane Dorian, which hit the Bahamas, will bring insurers losses of at least $ 25 billion, Bloomberg reports citing UBS Group AG analysts.

This is the largest natural disaster damage to the industry since 2017.

Dorian could cause damage of up to $ 40 billion depending on whether it hits the east coast of Florida in the next few days, analysts warned.

According to the German reinsurance company Munich Re, the last natural disaster, with insurance claims of more than $ 25 billion, was Hurricane Maria two years ago.

The insurance industry has benefited from a relatively small number of major natural disasters since the time of Mary. This allowed the world’s largest reinsurers to maintain surplus capital of $ 30 billion, UBS said.

The bank has calculated that the likely losses from Dorian will reduce this capital, which could force reinsurers to change their prices.

Earlier, the US National Hurricane Center assigned Hurricane Dorian the fifth maximum category.

As reported by Vesti.Ekonomika, the US states announce the emergency mode in connection with the impending hurricane.

In total, evacuation was announced in four states of the USA: Georgia, Florida, North and South Carolina.

It is estimated that the hurricane will reach the coast of Florida by Monday evening.