Thursday, October 19, 2017

Big losses expected from recent hurricanes

The global insurance industry is expected to face a hard battle this year in terms of finances due to the damage wrought by hurricanes Harvey, Irma, and Maria.

According to JP Morgan, massive losses are to be expected from these, and in a note written for JP Morgan clients on Thursday, Sarah DeWitt said the industry’s insured losses from the third quarter hurricanes may hit up to US$100 billion.

This, she said, should be enough to lead to higher premiums for property insurance and reinsurance prices, considering that this amount will devastate insurers’ excess capital.

She recalled an experience in 2005 when property insurance premiums soared by about 10% due to hurricanes.

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