Reinsurer Munich Re has released updated loss estimates for some of the major loss events of the year, including for the major hurricanes this summer, the coronavirus pandemic, and the Beirut explosion.
The company is anticipating a low triple-digit-million euro amount in claims expenditure for the damage caused by hurricanes Hanna, Isaias and Laura in July and August 2020.
Estimates for the total industry loss from Hanna range between $350 million and $400 million, and between $4 billion and $5 billion for Isaias.
But the view on Laura is more divided, with AIR Worldwide offering a $4-8 billion range, KCC landing on a $9 billion figure, and RMS saying losses could be as high as $13 billion.
For the Beirut explosion, Munich Re expects claims to be in a low three-digit-million euro range, mostly relating to property.
The Association of Insurance Companies in Lebanon (ACAL) expects re/insurers to cover about $3 billion of the damages resulting from the blast, while officials have estimated that total economic losses could be between $10-15 billion.
Since 30 June, Munich Re says that its COVID-19-related losses so far have developed with reduced momentum, compared with the first two quarters.
The reinsurer reported COVID-19 related losses of roughly €800 million in the first quarter of the year and €700 million in the second quarter, for a total H1 cost of €1.5 billion.
The fact that Munich Re seems to be seeing a slowing down in pandemic losses is notable, given that many market participants had been expecting Q3 and Q4 to yield even larger losses than the earlier quarters.
Finally, Munich Re also acknowledged the potential for losses from the ongoing California wildfires, but said that it does not believe the impact will be material at this point.
