Crop losses from US drought could hit $20bn, warns AIR
Total (re)insured losses from the severe drought in the US are expected to exceed $13bn and may rise to $20bn, according to catastrophe modelling firm AIR Worldwide.
AIR's loss estimate is based on gross loss ratios of 120-180 percent and total premiums of $11bn, it said.
However, AIR stressed that the vast majority of these losses would be ceded to government backstop the Federal Crop Insurance Company, leaving private (re)insurers with losses of $1bn-$3bn.
"After the hottest July on record,...
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