The insurance industry was optimistic until Hurricane Milton and Hurricane Helene hit, causing total economic losses estimated to soar over $200 billion. The fallout could lead to insurers raising premiums or pulling back from high-risk areas, further straining the federal flood insurance program. Lawmakers are concerned about the program’s ability to pay flood claims without more funding. Consumer groups are pressuring insurers to provide affordable policies for low-income homeowners in climate-vulnerable communities. Some are even calling for a federally administered marketplace for homeowners insurance. Smaller insurers, especially those focused on Florida, are at high risk of collapse under the weight of claims from the storms. It remains to be seen how the industry will respond to the financial impacts of these natural disasters.
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