Insurance Losses from Hurricane Debby to Remain “Very Manageable,” Says Gallagher Re

Insurers and reinsurers are projected to incur losses from Hurricane Debby that may total in the low single-digit billions of dollars, a number deemed “very manageable” for the industry, according to a report by Gallagher Re.

Wind and water-related damages are estimated to cost insurers between $1 billion and $2 billion. The relatively low losses can be attributed in part to the decrease in active insurance policies, as noted in the report from the reinsurance broker.

The implications of these findings could calm concerns regarding the industry’s financial impact, which has faced substantial claims due to weather-related catastrophes in recent years. The rise in frequency and severity of storms and wildfires has led some insurers to withdraw from regions vulnerable to extreme weather.

Hurricane Debby made a second landfall in South Carolina after previously hitting Florida as a Category 1 hurricane. The storm has resulted in at least seven fatalities. It has since been downgraded to a tropical depression.

Gallagher also cautioned that its estimates of insured losses are preliminary and may change as more information becomes available.