Changes to the way insurers do business in Florida since Hurricane Andrew in 1992 are likely to limit the insurance cost of hurricanes Charley and Frances. Now comes Hurricane Ivan, which may yet prove to be the biggest and nastiest of them all. 

Charley and Frances have caused insured damages estimated at $US12 billion – still short of the $US15.5 billion cost of Andrew. New insurance programs mean the insurers will pay out less this time. The industry expects to pay out $US6.7 billion in damages for Charley and $US5 billion for Frances.

The lower cost is due to a combination of new government catastrophe funds and increases in premiums and deductibles.

Meanwhile, Hurricane Ivan has caused at least 60 deaths in the Caribbean, striking Jamaica over the weekend with 250kmh winds and seven-metre waves. 

The storm has been erratic, with one US media report describing it as “moving from side to side like a drunken sailor”.

The US National Hurricane Centre in Miami says Ivan is the sixth most powerful hurricane to hit the region. It was expected to reach Cuba early today, and is moving slowly towards the Florida coast. Maximum sustained winds were reaching 260kmh with higher gusts reported.