typhoon Hagibis 2019

MS&AD Holdings, the Japanese parent to domestic insurance carriers Mitsui Sumitomo and Aioi Nissay Dowa Insurance, as well as its international operation MS Amlin, has revealed today that it expects its ultimate loss from typhoons Hagibis and Faxai will be approximately US $3.36 billion, before reinsurance recoveries.

Analysts at Keefe, Bruyette & Woods (KBW) have agreed that insurance giant American International Group’s (AIG) per-occurrence reinsurance tower is at-risk of losses following typhoon’s Faxai and Hagibis, while today the insurer’s executives said that Validus’ retrocession could also be exposed.

Catastrophe risk modelling specialist RMS has now published an estimate for the insurance and reinsurance market impact of recent Japanese typhoon Hagibis, estimating the industry losses at between $7 billion and $11 billion.

The CEO of reinsurance firm RenaissanceRe said that his company believes typhoon Faxai could drive as much as a $10 billion industry loss, while the more recent typhoon Hagibis could a roughly 50% larger bigger at approximately $15 billion.

Company specific loss estimates from leading insurance and reinsurance firms for recent typhoon Hagibis appear to confirm that the industry impact of that storm are going to eclipse that of the other recent Japan typhoon Faxai.

SCOR, the global reinsurance player headquartered in France, has been benefiting from its retrocesssion program for recent catastrophes, making recoveries for both hurricane Dorian and typhoon Faxai, according to the CEO of SCOR Global P&C.

Industry losses from the flood driven damage of typhoon Hagibis could reach into the double-digit billion dollar range, according to ILS manager Twelve Capital, who also highlighted that in the ILS market it is collateralised retrocession that appears most at risk of performance impacts.

Typhoon Hagibis loss impact on insurance, reinsurance and insurance-linked securities (ILS) markets is likely to drive further rate improvements at upcoming renewals, but the market should watch out for potential loss creep, analysts at KBW warn.

Typhoon Hagibis is estimated as likely to cause an insurance and reinsurance market loss somewhere in a range from $8 billion to as much as $16 billion, by AIR Worldwide.

Insurance giant American International Group (AIG) is likely to severely drain its reinsurance protection for Japanese loss events after it accounts for its losses from typhoons Faxai and Hagibis, according to analysts,