Hurricane Iota has rapidly strengthened into a major hurricane and will bring catastrophic and life-threatening impacts to a Central American region that has yet to recover from the impacts of recent storm Eta.Hurricane Iota formed in the Caribbean in recent days and is taking a similar path to major hurricane Eta that slammed into Nicaragua as the strongest Atlantic storm of the year and caused significant damage and loss of life.Hurricane Iota is also heading for landfall in Nicaragua and Honduras, in a similar area and will cause a potentially deadly storm surge, bring life-threatening wind impacts and also drench the already soaked region with 30 inches or more of rain.

Currently, hurricane Iota is moving towards Nicaragua and still strengthening, with sustained winds reported at the latest update as having reached 145 mph and higher gusts, making it an extremely dangerous Category 4 storm.Some further rapid strengthening is still forecast and hurricane Iota will be a dangerous storm when it approaches the coastline, perhaps at Category 5 strength.As ever, the threat to the insurance-linked securities (ILS) and reinsurance market from a storm impacting this region of Central America is not expected to be significant.

But the threat to lives and livelihoods will be particularly severe, especially for those in areas already trying to recover from Eta, this is potentially a terrible few days ahead for communities in the region.Insurance penetration remains low across parts of Central America such as this, with reinsurance support of local insurers also not significant in dollar value terms.Some parametric risk transfer coverage is likely to be in play, given there are some arrangements in the region with exposure to hurricane force winds.

Nicaragua itself has a CCRIF policy in place, for tropical cyclone risks, and this may already have been triggered by recent storm Eta, and now could be again by Iota it seems.A hurricane hunter aircraft found that hurricane Iota has strengthened rapidly in recent hours, with its minimum central pressure falling to 933 mb and sustained winds strengthening to 145 mph with higher gusts.The NHC says to expect hurricane Iota to sustain at least Category 4 winds through landfall, with some forecast models also suggesting a chance of further intensification by the time the storm reaches land.

The NHC warns, “Additional rapid strengthening is expected during the next 12 to 18 hours, and Iota could possibly be a catastrophic category 5 hurricane when it approaches Central America tonight.” The latest forecast warns of the dangers of hurricane Iota, saying the region should expect potentially catastrophic winds, a life-threatening storm surge and extreme rainfall.The NHC suggests a storm surge of 10 to 15 feet above normal levels, with rainfall in isolated totals of up to 30 inches and winds capable of severe property damage.The government’s of Nicaragua and Honduras have been encouraging people to evacuate out of the path of hurricane Iota and it is to be hoped that warnings are heeded as hurricane Iota will be the second extremely dangerous storm to impact this region within a few weeks.———————————————————————.

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