Insurers have been issuing claims estimates left and right in the aftermath of hurricanes Harvey, Irma, and Maria – understandably there’s a high degree of uncertainty, given the magnitude and nature of the catastrophic events, and with initial estimates being precautionary.
Revising its previous estimates, Lloyd’s has announced that it is now looking at approximately US$3.9 billion in combined net claims for Harvey and Irma. Meanwhile it has pegged its preliminary claims estimates for Maria at US$0.9 billion.
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“As more information has become available the latest analysis shows claims in the Lloyd’s market are less than our preliminary estimate,” noted Lloyd’s performance management director Jon Hancock. “The claims estimate for Harvey and Irma has reduced approximately 10% from the precautionary figure we issued with our half year results last month.”
He added: “While it is clear that these catastrophes will bear a heavy toll, the claims are spread across the entire Lloyd’s market, which has total net financial resources of £28 billion (US$36 billion).”
Hancock believes the devastation will certainly impact the re/insurance sector as a whole. “It also serves as a reminder to all companies that, even in a highly competitive market, they must maintain adequate and sustainable pricing for the risks they are insuring,” he stressed.
So far Lloyd’s has paid nearly US$900 million in claims for the three storms. “This is a developing situation and there continues to be a high degree of uncertainty around any claims estimate,” said Hancock.
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