Swiss Re has estimated that its losses from Hurricanes Irma, Harvey and Maria, and the Mexico earthquakes will be $3.6 billion, net of retrocession and before tax.

It said total market losses for the catastrophes are estimated to be $95 billion, and its share of pay-outs for the two Mexico earthquakes will be $175 million.

Swiss Re Group Chief Executive Officer Christian Mumenthaler, said: “The most recent natural catastrophes have been extremely powerful and we extend our sympathies to all those affected by these events.

“Through our long-standing and close client relationships, combined with our experience in complex claims handling after large natural catastrophes, we can support our clients when they need us most. It is during these times that we demonstrate our differentiated value proposition and show the value of insurance and reinsurance to society.”

Chief Financial Officer David Cole said: “Swiss Re maintains a very strong capital position and high financial flexibility to support our clients’ needs, respond to market developments and execute on our capital management priorities.”

(Reuters) – Swiss Re Ltd. estimates that global insured losses from catastrophes in 2017 will hit $136 billion, the third-highest on record for the sector, with the United States hardest hit, it said on Wednesday.

Total economic losses from natural and man-made disasters in 2017 are estimated to be $306 billion, up from $188 billion in 2016, Swiss Re said in a statement, quoting preliminary data.

“The accumulation of economic and insured losses ramped up in the second half of the year, due primarily to the three hurricanes – Harvey, Irma and Maria – that hit the U.S. and the Caribbean, and wildfires in California,” Swiss Re said.

More than 11,000 people had died or gone missing in disaster events this year, the world’s second-biggest reinsurer said. ‍​

Based on 2017 values, the costliest year for insured catastrophe losses was 2011, when Japan and New Zealand were hit by earthquakes and Thailand suffered severe flooding, and the second most costly was 2005, when hurricanes Katrina, Rita and Wilma hit the U.S. Gulf Coast, Florida and the southeast.

Published:Wednesday | September 27, 2017 | 9:22 PM

•  Shaw made the announcement while responding to questions in Parliament yesterday.  This after the island was unable to get a drawdown from the Fund because the country’s insurance policy did not cover damage associated with excess flooding.  In April and again in May, heavy rains caused flooding, landslides and breakaways across several parishes.
• The damage was estimated at more than $4 billion.
• Finance Minister Audley Shaw
• Meanwhile, the finance minister disclosed that the allocations in the budget for natural disasters have already been depleted due to damage sustained from heavy rains that lashed the island earlier this year.
• More than a year ago Jamaica upgraded its CCRIF policy after the country sustained massive flooding following the passage of tropical storm Erika in 2015.
• Citing the damage sustained by several Eastern Caribbean countries in the aftermath of two powerful hurricanes in the space of a week, Shaw said there is a need for Jamaica to enhance its insurance coverage.
• Finance Minister Audley Shaw says the government will be reviewing the insurance policy with the Caribbean Catastrophe Insurance Fund (CCRIF) given the severity and frequency of natural disasters affecting the region.

Caitlin Morrison

Lloyd’s of London has announced a 16 per cent dip in profit for the first half of 2017, and the group said it has not yet taken stock of the effects of recent devastating hurricanes in the Caribbean and United States.

However, chief executive Inga Beale told Reuters that net losses from the storms could reach $4.5bn (£3.4bn).

“There was limited major claim activity in the first half. There’s a very different second half emerging – it’s not only the hurricanes but we’ve got the Mexican earthquakes, floods in Asia, typhoons in Asia,” she said.

“The hurricane season is still in play, earthquakes can happen at any time.”

The insurance market reported pre-tax profit of £1.22bn, compared with £1.46bn this time last year.

Gross written premiums increased to £18.9bn, and the combined ratio improved to 96.9 per cent, from 98 per cent.

“These results highlight the continued strength of the Lloyd’s market, but they do reflect the challenging conditions that have shaped the sector over recent years,” said Beale.

“Our focus on maintaining a strong underwriting discipline and concentrating on profitable lines of business is showing signs of success, but we cannot allow that focus to waver if we are to continue to ensure the Lloyd’s platform is the most attractive option for customers.

“Whilst these results do not cover the current hurricane season in the Caribbean and United States, the market is assessing claims and starting to make payments that will help local communities and businesses get back on their feet as quickly as possible. It is our ability to respond quickly and effectively in times like these that differentiates the Lloyd’s market and is ultimately what we are here to do.”

Beale previously said insurers could rack up losses of $200bn (£150m) due to the recent storms on the other side of the Atlantic.

Oliver Gill

One of Lloyd’s of London’s best-known insurers today revealed a series of natural catastrophes are to cost the firm up to $275m (£206m).

London-listed Beazley estimated the fall-out of hurricanes Harvey, Irma and Maria alongside earthquakes in Mexico would reduce bottom line earnings by $150m.

However, it added: “Currently there is significant uncertainty surrounding the cost of these events.”

Further details will be provided in Beazley‘s third-quarter trading update in November.

Earlier this week Lloyd’s of London boss Inga Beale said the summer storms that lashed the Caribbean and United States would lead to net losses of $4.5bn for the corporation.

Lloyd’s profits dipped 16 per cent to £1.2bn for the first half of 2017, though the figures did not take into account the impact of recent natural catastrophes.

Insurers are hoping that 2017’s catastrophes will reverse a trend of lowering insurance pricing for natural disasters.

Lloyd’s firms, which are one of the world’s largest underwriters of catastrophe policies, are dependent on the occurrence of natural disasters to prop up demand for such policies. Analysts have predicted that a summer of storms will at least halt the decline in premiums and could see them return to more profitable levels.

Please click on the below link:

willisgroupservices.com/PROD2LZ/lz.aspx?p1=05063702S7987&CC=&p=0

Member Companies:

Please note the following scheduled CII Exam Classes being held at Island Heritage Insurance with Annette Jim (lecturer)

IF1: Insurance, Legal, Regulatory course for sitting exams in October 2017.

Monday 21,  August 2017

Wednesday 30,  August 2017

All Mondays in September 2017 ( September 4, 2017, September 11, 2017, September 18, 2017, September 25, 2017)

Monday 2 October, 2017

Time is 5.15pm to 7pm

Attendance at a minimum of 4 classes in order to sit mock exams

Students expected to read chapters before class

The CII is running a MOOC (Massive Open Online Course) on “Introduction to Insurance” starting on 11 July 2017.

Access is via the CII’s MOOC platform Insuranceversity. The course is FREE, interactive and will introduce you to the fascinating world of insurance, potentially with a view to taking a professional qualification.

Topics covered will include:

• Insurance and the global financial services industry

• Insurance: the why and how

• Structure of the insurance market

• Key roles in the insurance industry

• Distributing insurance products

• Customer service in insurance

• Risk

For more info and to register, visit: lnkd.in/d5_UYzH

Legal concerns raised over CCTV cameras, drone use