According to estimates by reinsurer Scor, hurricanes Harvey, Irma and Maria and the earthquakes in Mexico cost private insurers $95 billion.
The bill for natural disasters should be extremely high in 2017. After an abnormally calm start to the year on the storm front, the elements were indeed unleashed at the end of the summer. Hurricanes Harvey, which swept through Texas, Irma and Maria which ravaged the Caribbean in September, as well as earthquakes in Mexico, are expected to cost the private insurance market 95 billion dollars (81 billion euros) , according to the first estimates of the reinsurer Scor, which used its own data and modeling tools.
Australia’s QBE says 2017 is likely ‘to be the costliest year in the history of the insurance industry’
Other insurers have already sounded the alarm. The Australian QBE estimates that it is likely that 2017 « will be the most expensive year in the history of the insurance industry ». The total bill for insurers should therefore exceed the 175 billion dollars (161 billion euros) of economic damage caused in 2016 by catastrophic events (or technical events such as industrial accidents) occurring on the planet, calculated by the reinsurer Swiss D.
Few insurers have so far announced how much natural disasters will cost them this year. Scor announced on Monday that it estimated the cost of both hurricanes Harvey, Irma and Maria and the earthquakes that affected Mexico at 430 million euros, after retrocessions and taxes, in the third quarter.
For the time being, it is the British Lloyd’s which risks paying the heaviest price: it has estimated the cost of reinsurance at 4.5 billion dollars for Harvey and Irma. For its part, the American insurer Chubb expects a bill that could go up to 1.28 billion dollars for these two hurricanes, while Maria could cost it 200 million dollars after taxes in the third quarter. In the future, the bill for natural disasters is expected to continue to soar.