Loss Creep

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Loss creep refers to increasing loss estimates and reported losses from previous loss events, such as a large hurricane.

Significant loss creep occurred following the impact of hurricane Irma in 2017, the creeping loss estimates of the California wildfires, and typhoon Jebi in Japan.

The impact of 2017 and 2018 catastrophe losses hit the ILS fund market, with loss creep from these catastrophe events damaging the returns of both the private ILS and cat bond fund market.

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