Estimate Sets Hurricane Nicole Insured Losses at Less Than $2 Billion
November 18, 2022
Total private market US insured losses from Hurricane Nicole will be less than $2 billion, with the best estimate of $1.6 billion, according to risk modeling firm RMS.
The RMS estimate represents insured losses resulting from wind, storm surge, and precipitation-induced flooding.
RMS estimated privately insured wind and storm surge losses of $1.2 billion to $1.8 billion from Hurricane Nicole, based on an analysis of the storm using RMS North Atlantic hurricane models.
RMS said its modelers developed and validated the wind, storm surge, and inland flood reconstructions and corresponding loss estimates using publicly available observations, including wind stations, river gauge water level data, and Web reconnaissance.
"Even though Hurricane Nicole was much less intense than Hurricane Ian a few weeks prior, it exhibited a large wind field that impacted many of the same areas in Florida," Jeff Walters, staff product manager, North Atlantic Hurricane Models at RMS, said in a statement.
"RMS Event Response teams estimate that roughly 98 percent of postal codes in Florida impacted by Nicole were previously impacted by Hurricane Ian," Mr. Walters said. "Similar to other overlapping events from previous seasons, such as Hurricanes Ida and Nicholas in 2021, and Laura and Delta in 2020, we expect the overlapping nature of Hurricane Ian and Nicole to introduce significant uncertainties in the loss attribution and claims settlement process."
RMS also estimated that losses from Hurricane Nicole to the National Flood Insurance Program would be less than $300 million, primarily in Florida and Georgia.
Hurricane Nicole was the 14th named storm of the 2022 North Atlantic hurricane season, the 8th hurricane, and the 2nd hurricane to make US landfall this season. The hurricane made landfall on November 10, 2023, near Vero Beach, Florida, as a Category 1 hurricane with maximum sustained winds of 75 miles per hour.
November 18, 2022