Archive for September, 2017

The first two smaller primary insurers to report on the impact of hurricane Harvey are both likely to claim on their reinsurance for help paying hurricane Harvey losses, reflecting one source of loss for traditional and alternative reinsurers.

Data from the Artemis Deal Directory shows that catastrophe bond issuance over the 12-month period ending August 31st, 2017 reached a new market high of $13.5 billion, and with insurance-linked securities (ILS) predicted to expand its remit, further growth is likely.

The insurance and reinsurance industry loss from hurricane Harvey has been estimated at $15.4 billion by catastrophe risk modelling firm Karen Clark & Company, excluding the impacts to the National Flood Insurance Program (NFIP).

Hurricane Harvey is expected to result in “extremely complex loss circumstances” making predicting the eventual toll that will be paid by reinsurance capital providers, both traditional and alternative, extremely difficult, according to A.M. Best.

Moody’s Analytics has now increased its estimate for the economic loss caused by hurricane Harvey to as much as $108 billion, reflecting an expectation that the insurance and reinsurance loss will rise further.

Analysts have updated their estimates for the insurance and reinsurance loss caused by hurricane Harvey’s impacts on Texas and the surrounding area, with Morgan Stanley now pegging the industry loss at up to $40 billion including the NFIP portion of flood losses, or up to $25 billion for the private market alone.