Hurricane Milton is forecasted to make landfall in Florida this Wednesday. Kinetic Analysis Corporation CEO Richard Murnane joins Catalysts Hosts Seana Smith and Madison Mills to discuss the possible economic impact of Hurricane Milton and recent movements in insurance company stocks as state residents prepare for the worst.
Murnane explains that Kinetic Analysis “provides clients with the most current estimate of what the distribution of maximum winds and storm surge is going to be” using calculations from its oceanic and atmospheric models driven by forecasts from the National Hurricane Center.
He says many of the company’s corporate clients are in the insurance industry. “With the current forecast, we are… estimating that just from the winds and storm surge, anywhere from $70 billion to maybe $100 billion” in damages, Murnane tells Yahoo Finance.
The Kinetic Analysis chief executive says that the company’s clients are “tracking [the storm] very closely” as “what’s particularly concerning to them is the area of properties that are exposed to hurricane-force winds.” It seems investors are also assessing the potential damages the storm could cause as Universal Insurance (UVE), Allstate (ALL), and Travelers (TRV) stocks rise.
In an interview from August, economics expert and social media creator Kyla Scanlon likened rising home insurance costs are turning the American Dream of home ownership into the “American Nightmare,” as severe weather phenomena become more common.