Now that Dorian has officially cemented its position as the second-strongest storm to form in the Atlantic in modern history, UBS analysts have updated their models to reflect a broader swath of losses. It's now believed the storm could cause total insured losses in the range of $5 billion to $40 billion, with a 'base case' of $25 billion, up from $15 billion a few days ago.
This could put solvency capital at risk for some firms, the team of analysts said, according to Sputnik.
The analysts estimate the 2019 hurricane season could cause about $70 billion of natural catastrophe losses, which could erode excess capital and lead to higher premiums.
Though they got some relief last year, insurers faced record bills from hurricanes, earthquakes and wildfires in 2017, as Hurricanes Maria, Harvey and Irma hammered Puerto Rico and the Continental US...