Analysts from UBS have reported insurance claims from damage caused by hurricane Dorian will cause anywhere from $25 to $40 billion. Of course the upper limits will depend on the track that Dorian takes. Analysts have estimated the 2019 hurricane season could cause around $70 billion in losses, which could leave some insurance institutions insolvent as cash reserves would be unable to pay out all the claims.
At the moment the Dorian has weakened to category 4 strength and virtually stalled over Grand Bahama, pounding the island for more than 24 hours. With the storms track predicted to avoid a “direct hit” with Florida, and instead travel parallel to eastern US coast, many are hoping to avoid similar losses to the Bahamas.