Florida’s homeowners insurance marketplace was in a precarious state even before hurricane Ian’s devastating impact, but now the fallout and losses that are coming could be “overwhelming” for some carriers, ALIRT’s David Paul told Artemis.The magnitude of losses from hurricane Ian may tip more of the state’s homeowners insurers into insolvency, ALIRT Insurance Research’s Principal David Paul explained.His firm, ALIRT, had been highlighting the challenged state of Florida’s property insurance market for some months now.Previously, ALIRT had explained that , that reinsurance capital was all but throwing in the towel on reinsuring the state’s carriers, and that from the difficulties being faced.

Now, Florida’s property insurance market faces an escalation of these challenges in the wake of hurricane Ian and while its residents face losses and ultimately .As we discussed in an article this week, , raising the question of how the marketplace replenishes it.ALIRT’s Paul believes the coming months and years could be extremely difficult.

He explained to Artemis that, “The way I think about it, pre-Ian the state’s private property market was in a “straw breaking the camel’s back” position.Instead of a straw it got a log in the form of Hurricane Ian.“It’s going to be painful days there for some time to come.” Referring to the fact the situation in Florida was bad even before hurricane Ian, he continued, “I truly believe that the Florida property market was in a precarious state before Ian; this will simply be overwhelming for the market.” Adding that, “I’m close to certain that other dedicated homeowners insurers in Florida will be insolvent by then.” Some of the dedicated, or specialist, Florida homeowners players were already struggling on capital, having .

Paul believes that Ian could result in a crunch for the market in Florida, with potential insolvencies and the subject of downgrades is again on the table, it seems.“Rating agencies will need to take some action too, I believe,” Paul told us.———————————————————————.

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