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AIG’s Mark Lyons sees Q3 insured catastrophe losses at $40bn

Firefighter Holding Hose Pointing Water Stream onto Fire

AIG CFO Mark Lyons projects that total insured catastrophe losses for the third quarter will likely be “north of $40bn”.

“Between Ida and Germany and Japan and wildfires, it looks to me that in the industry this is $40bn-ish in losses,” the executive told participants at the Barclay’s Global Financial Services Virtual Conference. “It’s tough to tell.”

Lyons said he was not offering concrete statements about losses, but he can say the industry is going to see elevated figures.

“I think it just goes through market share and other kinds of things that could impact us as well,” he said. “Depending on what happens in Japan, that could also dial it up or dial it down relative to other expenses.”

Japan was hit with major flooding in July.

Switching gears to rate adequacy for cyber, Lyons said that cyber had the “highest effective rate change last quarter”.

“It’s been double-digit increases probably for the last five to six quarters,” he said. “The complexion of the claims has changed dramatically. Ransomware is the headline of the day and every successful one seems to embolden for more.”

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