The damage caused by Hurricane Charley to insured property in Florida could reach as much as $US15 billion, according to insurance industry experts. That’s a long way short of the cost of the last major hurricane to hit the state – Hurricane Andrew in 1992.

The hurricane hit Florida on Friday with winds up to 233kmh. As many as 16 people died and thousands have been left homeless.

Standard domestic policies cover some hurricane damage, but much of the tab will be picked up by various state instrumentalities which cover specific wind damage.

The bankruptcy of several insurers after Hurricane Andrew caused losses of some $US22 billion prompted the US and state governments to set up pools to reduce the insurers’ future hurricane exposures.

While Charley won’t significantly damage insurers and reinsurers’ bottom lines, it will force them to revisit their pricing strategies. Analysts in Europe and the US were suggesting in media reports last night that the cost of the hurricane may slow the slide in premiums that has been evident in global markets over the past few months.