U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
Oil Prices Rebound as Trump Orders Blockade of Sanctioned Venezuelan Tankers 
Asian Currencies Trade Sideways as Dollar Weakens Ahead of Key U.S. Data 
BOJ Poised for Historic Rate Hike as Japan Signals Shift Toward Monetary Normalization 
Canada Signals Delay in US Tariff Deal as Talks Shift to USMCA Review 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Japan Exports to U.S. Rebound in November as Tariff Impact Eases, Boosting BOJ Rate Hike Expectations 
Dollar Holds Firm Ahead of Global Central Bank Decisions as Yen, Sterling and Euro React 
Singapore Growth Outlook Brightens for 2025 as Economists Flag AI and Geopolitical Risks 
Oil Prices Climb on Venezuela Blockade, Russia Sanctions Fears, and Supply Risks 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
U.S. Stock Futures Slip After CPI-Fueled Rally as Markets Weigh Economic Uncertainty 
Asian Stocks Slide as AI Spending Fears and Global Central Bank Decisions Weigh on Markets 
Hurricane Milton has the potential to cause up to $50 billion in insured losses for Florida property owners, pushing the state’s total estimated insurance losses beyond $100 billion in 2024, according to a report published by Fitch Ratings. This significant financial impact raises concerns about the already strained Florida homeowners’ insurance market.
On Thursday, the Category 3 hurricane tore through Florida, leaving a trail of devastation. The storm has already claimed the lives of at least 10 people and left millions without power. Despite this destruction, the state narrowly avoided the "worst-case scenario," which had previously been predicted to cause as much as $100 billion in insured losses from Hurricane Milton alone.
However, according to updated estimates from Fitch Ratings, Hurricane Milton is now expected to result in insured losses between $30 billion and $50 billion. This figure makes Milton the most significant insured loss event since Hurricane Ian in 2022.
This comes on the heels of Hurricane Helene, which struck Florida just two weeks earlier. With Milton’s destruction factored in, total insured losses for the state are now expected to surpass $100 billion for the fifth consecutive year, Fitch analysts noted.
Rising Costs May Exacerbate Losses
A key factor influencing the ultimate loss figures will be the demand surge for supplies and materials needed for property repairs and rebuilding efforts. Historically, this demand has increased insured losses by 20% or more, according to the Fitch report.
Impact on Insurers
While Hurricane Milton's damage is significant, well-capitalized large property and casualty insurers, as well as global reinsurers, are unlikely to face serious credit issues. Domestic insurers, protected by reinsurance programs, are expected to absorb most of the financial impact. However, analysts warn that these insurers remain vulnerable if additional hurricanes strike during this season.
"The destruction caused by Hurricane Milton will further weaken Florida’s already precarious homeowners' insurance market," Fitch analysts stated. The ongoing strain raises concerns about the future stability of the state's insurance industry if similar events continue to occur in the near future.
Conclusion
As Florida faces another challenging hurricane season, the cumulative impact of storms like Milton continues to test the resilience of the state’s insurance market. Insurers, property owners, and local authorities must now prepare for both immediate recovery efforts and long-term strategies to mitigate the increasing risks posed by severe weather events.
