Hurricane Charley would represent a material loss to the insurance industry, said Fitch Ratings.
It said it expected the relatively wide range of insurance loss estimates, currently placed between $5bn and $10bn, could be revised significantly once actual storm parameters are available.
Even at the low loss estimates, Hurricane Charley would still represent the third largest insured US hurricane loss in history, said the ratings agency.
The insurers most likely to be affected by the storm were those writing primary property insurance (homeowners or commercial multi-peril) in the state of Florida or those selling property catastrophe reinsurance, warned the company.
But it added that many of the insurers with significant market share in the property lines in Florida were geographically diversified in risk and had high insurer financial strength ratings.
However, there are insurers with a geographical concentration of risk in Florida that could be materially affected.
