Re/Insurance: 2017 Global Insured Disaster Losses Estimated at $136bn—Swiss Re
From Artemis:
Reinsurance giant Swiss Re has estimated that global insured losses
from natural and man-made disasters will hit $136 billion, the third
highest figure on record but still trailing well below an expected $306
billion of economic impact.
Economic losses are significantly higher than seen in 2016 ($188bn) and
losses that will be paid for by insurance and reinsurance interests have
more than doubled from 2016’s $65 billion.
The total insured loss tally of $136 billion is well above the annual average of the last ten years, which sat at $58 billion.
From these figures it is easy to see why many in the insurance and
reinsurance sector are calling for rate increases at the upcoming
January renewal season.
The hurricanes that impacted the United States are the major drivers
of loss, both economically and on an insurance basis, with 2017’s
hurricane season cited as the second most costly after 2005.
Natural catastrophes accounted for the majority, or $131 billion of
this year’s insured losses, while man-made disasters only contributed $5
billion to the total.
“In recent years, annual insurance losses from disaster events have
exceeded USD 100 billion a few times,” commented Martin Bertogg, Head of
Catastrophe Perils at Swiss Re. “The insurance industry has
demonstrated that it can cope very well with such high losses. However,
significant protection gaps remain and if the industry is able to extend
its reach, many more people and businesses can become better equipped
to withstand the fallout from disaster events.”
Swiss Re estimates that the insurance and reinsurance industry will
pay around $93 billion of losses for the combined impacts of hurricanes
Harvey, Irma and Maria, with economic losses expected to be much higher
once the full cost is understood.
“There has been a lull in hurricane activity in the US for several
years,” said Kurt Karl, Swiss Re’s Group Chief Economist. “Irrespective,
there has been a significant rise in the number of residents and new
homes in coastal communities since Katrina, Rita and Wilma in 2005, so
when a hurricane strikes, the loss potential in some places is now much
higher than it was previously.”...
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