Major Losses

The Bermuda Monetary Authority expects carriers on the island to take a 25% share of the total industry loss.

With weaker economic growth and competitive pressures hindering insurers' efforts to push through offsetting price increases, the ratings agency expects the sector's underwriting profitability to weaken.

Inflation and a full post-pandemic return to shipping are expected to impact future claims.

The reinsurer emphasised the need for improved secondary peril models including predictive capabilities.

The year 2005, which featured the devastating Hurricane Katrina, remains the most expensive storm season.

2022 was a near-average season in terms of the number of storms, but featured an unusually quiet start in August, followed by two Florida hurricanes, including one of the US’s most expensive.

Flooding in February and March this year was the most expensive event in Australian history.

Earlier in the year, SMBC reported a $1.6bn write-off for planes stranded in Russia.

The pay-out figure has nearly doubled over the last two weeks.

The organisation has now recorded 640,496 claims, most of which were for residential property.

The market share for the storm of 3%-5% is below syndicates’ historical average for US wind events.

Most claims so far have been for damage to residential property.

A steady stream of legal actions are being filed against insurers over billions of dollars’ worth of stranded aircraft.

The CEO emphasized that the estimate is a modeled estimate and does not include litigation or inflationary pressures.

The modeller also said that losses to the National Flood Insurance Program will likely remain under $300mn.

The lessor is looking to recoup $750mn from its war insurers or over $875mn from its all-risk insurers, in the event that its war claim fails.

The new loss pick takes into account litigation and inflation costs, as well as claims activity to date.

In its annual report published earlier this year, BOC revealed it was pursuing a claim for aircraft worth $589mn stranded in Russia.

The central-west region of the state was struck by severe flooding over the weekend.

The amount Aircastle is looking for in the suit is, however, lower than the $350mn insurance claim that for equipment stranded in Russia.

Expanded state reinsurance support and legal reforms will be top priorities as Florida insurers face another retention loss.

The programme has paid out $437mn to policyholders so far.

According to the latest reports, around 110,000 customers have been left without power in Florida as Nicole makes its way across the state.

The Category 1 storm’s landfall on the east coast of Florida would be a “manageable” cat event that hurts primary carriers more than their reinsurers, he said.