Reinsurance News
Hurricane Harvey
Harvey economic loss estimate raised to $108bn by Moody’s Analytics
1st September 2017
The estimate of the economic costs of hurricane Harvey from Moody's Analytics has been increased, with the company now suggesting costs in a range from $81 billion to $108 billion, up significantly from its up to $75 billion estimate from earlier this week. As more information on the scale of ... Read the full article
Disputes, business interruption could complicate or escalate Harvey loss: CMS
31st August 2017
Law firm CMS explained today that there are a number of issues which have the potential to complicate the loss caused by hurricane Harvey and could result in increased costs falling to insurance and reinsurance firms. Insurers and reinsurers may face a number of dilemmas, CMS said, with hurricane Harvey's flooding ... Read the full article
Harvey to be one of Texas’ most costly insured loss events: RBC
31st August 2017
Based on current knowledge and industry loss estimates from the impact of hurricane Harvey on the state of Texas, it will be one of the most costly insured loss events to hit the state, and one of the worst flood events to strike Houston, on record, according to RBC Capital Markets. It ... Read the full article
Harvey insured loss within insurers’ retentions but could erode NFIP’s reinsurance program: Fitch
31st August 2017
Fitch Ratings has said that hurricane Harvey is unlikely to result in any ratings downgrades of property/casualty re/insurers as the storm is expected to be an earnings event, and while the insured loss is likely to fall within insurers' retentions, the storm could wipe out the National Flood Insurance Program's ... Read the full article
Harvey economic losses could reach U.S. $70-90 billion: RMS
31st August 2017
Hurricane Harvey's economic fallout could reach U.S. $70-90 billion with the majority of costs coming from inland flooding in Houston's metropolitan area, according to RMS' latest preliminary analysis. This estimate includes damage to all residential, commercial, industrial and automotive risks in the area, and possible inflation from area-wide demand surge, however, loss ... Read the full article
Harvey insured loss will be large, Geico exposure similar to Sandy: Warren Buffett
30th August 2017
Warren Buffett of reinsurance and investments giant Berkshire Hathaway said today that he expects that the insured loss from hurricane Harvey will be large, but uninsured will eclipse it, while also admitting that his auto insurer Geico could face a similar impact to the one it suffered from superstorm Sandy. Speaking ... Read the full article
Harvey economic loss could near Sandy’s $75 billion, says Moody’s
30th August 2017
Moody's Analytics has updated its economic cost projection for southeast Texas to between $51 billion and $75 billion, as catastrophic flooding from hurricane Harvey continues to impact the state. Moody's states that ultimately, Harvey could drive an overall loss similar to, or exceeding that caused by Superstorm Sandy, which would make it ... Read the full article
Harvey impact on reinsurance pricing to be regionally limited
30th August 2017
Impact on reinsurance pricing from hurricane Harvey is likely to be limited to the regions and policies directly affected by the storm as the heaviest losses are expected to be felt by property & casualty re/insurers with a strong regional focus, according to S&P. Experts had previously predicted that reinsurance pricing ... Read the full article
Harvey hit re/insurers unlikely to be rewarded with rate increases: Credit Suisse
30th August 2017
Hurricane Harvey, in isolation, was not "the catastrophe" the reinsurance industry has been waiting for to reverse the softening of market pricing, according to analysts at Credit Suisse. Joining other analysts and observers, the Credit Suisse team of Ryan Tunis and Crystal Lu are sceptical of the ability of hurricane Harvey ... Read the full article
Aon launches flood replacement cover for Harvey hit organisations
30th August 2017
Insurance and reinsurance broking giant Aon has launched a flood insurance replacement product for those organisations that have been hit by flooding related to hurricane Harvey and have impaired or exhausted their coverage limits on property policies. Aon Risk Solutions, Aon plc's global risk management business, has created a flood limit ... Read the full article
Regional P&C insurers face heavy Harvey blow: Moody’s
29th August 2017
The devastating Texas floods triggered by hurricane Harvey are set to worsen into early September, triggering heavy losses for property & casualty re/insurers with primary insurers with a regional focus feeling the heaviest impact due to their geographical density, according to Moody's recent Credit Outlook. Moody’s named State Farm Mutual Automobile Insurance, The ... Read the full article
Harvey could slash European reinsurers’ net income by 1/3
29th August 2017
Hurricane Harvey could slash European reinsurers’ net income by nearly one third with insured losses reaching up to $10-20 billion, or more given the extent of flood damage, analysts predict this could stabilise but not significantly impact the soft market pricing cycle. European reinsurers could see a net loss of 27% ... Read the full article
Harvey’s wind & storm surge insured losses at $1.2 bn to $2.3bn: AIR Worldwide
29th August 2017
AIR Worldwide has estimated Hurricane Harvey’s initial Texas wind and storm surge insured losses will range from $U.S. 1.2 billion to $U.S. 2.3 billion. This figure doesn't include the growing impact of the increasing levels of catastrophic flooding or business interruption losses resulting from the closure of oil refineries in the ... Read the full article
Hurricane Harvey floods could bring NFIP reinsurance into play
29th August 2017
The flooding caused by hurricane Harvey's torrential rainfall continues and is in many cases worsening, with it being termed "catastrophic" and the worst rainstorm in American history. Flood losses to residential homes are of course dealt with by the National Flood Insurance Program (NFIP), where coverage has been purchased and that ... Read the full article
Hurricane Harvey likely to be an earnings event and a reminder to the industry: KBW
25th August 2017
In light of Hurricane Harvey's expected path towards Texas, with reports predicting the storm to intensify to a Category 3 storm as it makes landfall late Friday or early Saturday, analysts at Keefe, Bruyette & Woods (KBW) expect the event to remind re/insurers of hurricane risks as losses are likely ... Read the full article
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