Hiscox, the international specialist insurer, has undertaken a first estimate of the combined impact of Hurricane Harvey and Hurricane Irma.
Due to the interrelated nature of reinsurance recoveries for these two events, the Group is disclosing a combined figure. Based on an insured market loss of US$35 billion for Hurricane Irma and US$25 billion for Hurricane Harvey (excluding the government backed National Flood Insurance Program), Hiscox estimates combined net claims of approximately US$225 million. Although there is still a degree of uncertainty around these hurricanes, this is within the Group’s modelled range of claims for events of this nature, and we still have depth of cover in our reinsurance programme.
Hiscox Group CEO, Bronek Masojada, said: “Paying claims from devastating events like these is precisely what we are here for. Our focus is to get our customers back on their feet as quickly as we can.”
Bronek added: “These events are already having an impact on rates in the global insurance market, particularly in affected areas and specific sectors. After a number of years of rate reductions, we are starting to see price corrections, most acutely in affected lines such as large property insurance and catastrophe reinsurance, which we expect to spread to non-affected lines. Although these are huge insured events, sadly, they also highlight the lack of cover in places.”