14 Jul Deadly Windstorm Transformed Market
30 years after Hurricane Andrew devastated parts of Florida, the insurance sector continues to feel the effects of the catastrophe.
When Hurricane Andrew ripped through southern Florida in 1992, tearing up buildings and killing more than 2 dozen people, few had witnessed such a destructive natural catastrophe in the United States.
In the 30 years since, the U.S. has endured multiple storms that caused more damage than Andrew, but it was the earlier storm that put insurers and businesses on notice about the potential for such large losses and transformed property underwriting and risk management.
Catastrophe modeling, which was in its infancy before Andrew, became a main stream underwriting tool; outdated and poorly enforced building codes were upgraded in Florida and elsewhere, making homes and businesses more resilient. Eight highly capitalized property catastrophe reinsurers launched in Bermuda, causing reverberations throughout the insurance sector, and insurance contracts were overhauled, effectively imposing much higher retention‘s on policyholders.
Click to read the entire article: Deadly Windstorm Transformed Market July 2022 – Business Insurance
We’re here when you need us.