Hurricane Idalia has caused significant damage and flooding across Florida, Georgia, and the Carolinas, but will it become the costliest climate disaster for the US in 2023? Analysts estimate that the preliminary cost of Hurricane Idalia ranges from $9.36 billion to $20 billion, putting it in a significant financial range. However, these estimates are still lower than the damage caused by Hurricane Ian last year, which left a trail of devastation costing $112.9 billion.

One reason Hurricane Idalia's cost is expected to be relatively lower is due to its path, which passed through a rural and lesser-populated area of Florida with fewer insured structures. Additionally, property values in the affected area are lower than other regions in the state, which also affects the estimated damage.

Despite the lower cost, the impacts on the insurance and risk management industries are significant. The increasing frequency of extreme weather events, including hurricanes, has led to rising costs and strains on the insurance market. Florida, in particular, has seen several large insurance providers leave or go out of business, resulting in higher premiums for consumers.

While Hurricane Idalia may not be the costliest climate disaster of 2023, the increasing frequency and intensity of storms due to climate change suggest that events like it will become more common over time. Therefore, the financial implications and need for change in the insurance industry remain crucial for the future.