As Hurricane Beryl batters the Caribbean, the strength and timing of the storm has set alarm bells ringing for insurers around the world, fearful of a potentially extended and costly storm season. Beryl is the earliest Category 5 storm ever recorded in the Atlantic, with 165 mph sustained winds fuelled by record warm waters.

The hurricane is expected to reach Mexico’s Yucatan Peninsula towards the end of the week after sweeping through the Caribbean, passing close to Jamaica as a Category 4 storm on Wednesday.

Shares of several European insurers fell on Tuesday as Beryl’s impact was felt, with analysts fearing echoes of the last time a storm of such severity was seen in the region in July; in 2005, Emily preceded a storm series that included the devastating Katrina which caused severe damage to New Orleans, with the loss of almost 1,400 lives and a global insurance cost of US$102bn.

The storm has so far killed at least seven people, with three in Grenada, three in Venzuela and one in St Vincent and the Grenadines. Widespread damage has been reported in various other locations throughout the region, including Barbados and the islands of Bequia and Union Island.

Next in line for Hurricane Beryl is the Cayman Islands where it is due to arrive on Thursday night, while the US National Weather Service warn it has the potential to reach Texas over the weekend.

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