The recent severe convective hail storm that struck Brisbane in Queensland, Australia, has seen reported insured losses rise again, now reaching the AUD$1 billion mark ensuring a growing hit to reinsurance firms, and possibly some ILS funds, with exposure.
The Insurance Council of Australia (ICA) has reported this morning that the number of filed claims has reached 100,223 from property and motor vehicle owners affected by the hailstorm. Estimated insurance industry losses now stand at $1,040 million (USD$850m) as a result, up 23% from its last reported total of AUD$845m.
As we wrote in our last update on this event, some ILS fund managers had put reserve capital aside in November to protect against any potential loss from this hail event, as it was expected that the industry loss would rise.
Protections against Australian perils are an increasing aspect of the ILS market, with a number of ILS managers participating in large Australian reinsurance programs on a collateralized basis. With this event having hit the reinsurance layers there is the potential for some impact.
The reserving by ILS managers was reported during November and with losses now having risen considerably there is the potential for further reserving to be required. However, any impact will remain small, as this is not a particular major event for the reinsurance sector.
Subscribe for free and receive weekly Artemis email updates
Sign up for our regular free email newsletter and ensure you never miss any of the news from Artemis.