Hurricane Lane may have caused widespread floods and landslides in Hawaii, but insurers should be equipped to handle any losses, A.M. Best said in a new briefing.

The ratings agency said that most insurers exposed to catastrophe risk, based on direct premiums written in Hawaii, appear to have diverse risk footprints and enough capital to back their current ratings and handle what may come to them.

That said, coverage could be costly.

There are approximately 60,000 National Flood Insurance Program policies in-force in Hawaii, according to FEMA data cited by A.M. Best. If the program has to pay out Hurricane Lane-related claims costs, “along with other recent and prospective events, it would be the second-straight year the placement was triggered,” A.M. Best said.

Auto insurers could see substantial claims as well, according to A.M. Best, because there was widespread flooding that exceeded 50 inches in some parts of Hawaii.

Source: A.M. Best