Insurers exposed to destruction caused by Hurricane Frances in Florida may face up to $US10 billion in claims. Hurricane Charley’s visit to Florida last month has already cost insurers an estimated $US6.8 billion.

Ratings agency Standard & Poor’s has expressed concern that insurers did not anticipate a second hurricane and have consequently underpriced for reinstatements after a second event. 

But the Insurance Information Institute says processing claims will be “difficult but achievable”, and the insurance industry has adequately prepared for such catastrophes.

More than 7000 loss adjusters have been at work in the state since Hurricane Charley three weeks ago, and the institute says thousands more will be needed.

The hurricane hit Florida’s east coast at 169kmh on Sunday morning but by the afternoon the wind speed had dropped by 40kmh. What makes Frances a more deadly prospect than Charley is its lower speed of movement.

Fearing that Frances could be more powerful than Hurricane Andrew in 1992, authorities ordered the largest evacuation in Florida’s history with 2.8 million residents moving inland. However, the forecast was later downgraded.

Stand by now for Hurricane Ivan, which is due to cross the Florida coast later this week.