Hurricane Ivan is the third bad hurricane of the season in the US and it’s expected to cost insurance companies between $US4 billion and $US10 billion. There are indications that the damages from Ivan and earlier hurricanes this season may be enough to trigger some increases in property reinsurance rates, or at least arrest any price declines.

Hurricane Charley hit Florida in August and is set to cost insurers between $US5 billion and $US8 billion. Although it is too early to tally the cost of Ivan, industry analysts say it may surpass that of Charley – which would make Ivan the second most costly hurricane in US history after Hurricane Andrew in 1992.

Andrew inflicted $US30 billion of damage, resulting in insurer losses of $US16 billion.

The hurricane season is not due to end until November, so there could be more blowouts for insurers.