hurricane Dorian

According to insurance and reinsurance broker Aon, hurricane Dorian’s impacts in the United States are only expected to result in insured losses of up to $600 million, while in Japan the broker says typhoon Faxai will cost re/insurers over $5 billion.

Typhoon Faxai’s impacts on the global insurance and reinsurance industry is expected to push the big four reinsurers beyond their quarterly natural catastrophe budgets for the third-quarter, with Swiss Re anticipated to take the largest hit given its market share in Japan.

The Government of The Bahamas has now received US $12.8 million in payouts from its parametric insurance policies with the CCRIF (formerly named the Caribbean Catastrophe Risk Insurance Facility).

Reflecting on the potential impacts from recent catastrophe events to insurance-linked securities (ILS) and collateralised reinsurance investments, specialist ILS fund manager Twelve Capital warns that together hurricane Dorian and typhoon Faxai might erode some underlying protective layers.

In the main, funds investing in insurance-linked securities (ILS) and collateralised reinsurance are expecting any losses from hurricane Dorian that flow to the sector will be largely attritional in nature.

Mark-to-market losses to some hurricane Dorian exposed catastrophe bonds is set to dent August for a number of pure cat bond fund strategies, as end of month marks did not factor in the changes in forecast path.

CCRIF (formerly named the Caribbean Catastrophe Risk Insurance Facility) is set to payout almost $11 million to the Bahamas after hurricane Dorian triggered its parametric tropical cyclone insurance policy.

Specialist insurance-linked securities (ILS) investment manager Plenum said that given hurricane Dorian’s path remained largely offshore of the United States, it does not expect the eventual insurance and reinsurance market loss will trigger any of its catastrophe bond positions.

The fourth named tropical storm of the 2013 Atlantic hurricane season has formed today in the eastern Atlantic ocean, not far to the south and west of Cape Verde. It’s the first named storm of 2013 to have originated off the east coast of Africa, a traditional hurricane breeding ground.