Insured losses from Hurricane Debby will be ‘very manageable’

Insurer and reinsurer losses from Hurricane Debby are expected to be in the billions of dollars, a figure that would be “very manageable” for the industry, according to a report by Gallagher Re.

Wind and water losses could cost insurers between $1 billion and $2 billion. Fewer active insurance policies were partly why losses would be so low, the reinsurance broker’s report said.

The findings could reassure those worried about the hit to an industry that has been responsible for billions of dollars in damages from weather-related disasters in recent years.

Increasingly frequent storms and wildfires have also caused some players to withdraw from areas prone to extreme weather.

Debby made landfall for the second time this week in South Carolina on Thursday, days after hitting Florida as a Category 1 hurricane. At least seven people have died.

It was downgraded to a tropical depression on August 8.

Gallagher cautioned that its estimates for insured losses are preliminary and subject to change.

Photo: (AP Photo/NOAA)

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Catastrophe Natural Disasters Loss of Profit Hurricane AJ Gallagher