Business Insider: “Back-to-Back Florida Hurricanes Signal Trouble for Home Insurance Prices Nationwide”
RFF Fellow Penny Liao comments on how Hurricanes Helene and Milton may change the landscape of disaster insurance.
With Hurricanes Helene and Milton shaping up to be massive loss events, reinsurers could be on the hook for paying out billions of dollars of claims, which would, in turn, shrink the reinsurance industry's capacity to supply capital when it comes time to renew contracts next year, thus driving up premiums in the primary market, Yanjun (Penny) Liao, an economist and fellow at nonprofit research institute Resources for the Future, said.
"Because primary insurers rely on reinsurance everywhere, this could happen even in places that are not hit," Liao added.
