Superstorm Sandy is forecast to cost the insurance industry $US20 billion ($19.2 billion) – but it may not lead to a hard market.

Ratings agency Fitch has made the estimate using reports from insurers, which have so far reached losses of $US17 billion ($16.3 billion).

Munich Re estimates likely insurance losses at $US25 billion ($24 billion).

Fitch does not expect changes to ratings, saying losses are manageable because insurers had spread their geographic risk – although it notes there re gaps in flood models.

“Sandy is not likely to change market underwriting capacity and tip the balance to a hard property market,” the agency says.

“However, it is more likely to promote continuation of favourable pricing trends in 2013, particularly in US primary property markets.”

The agency’s estimate is at the high end of catastrophe modellers’ predictions.