Global insurance losses from natural disasters are expected to reach $112 billion in 2022, reinsurance broker Guy Carpenter said Friday, due to the impact of Hurricane Ian which hit Florida earlier this year.
Floods and hail in Europe, flooding in Australia and severe storms in the United States also contributed to the total, Guy Carpenter said in a statement.
Hurricane Ian and other natural disasters have caused about $115 billion in insured losses so far this year, well above the 10-year average of $81 billion, reinsurer Swiss Re estimated earlier this month.
Reinsurance rates are expected to rise sharply on the key January 1 renewal date due to losses from Hurricane Ian and the war in Ukraine, industry sources say.
Ship insurers have excluded Ukraine, Russia and Belarus from war liability policies as reinsurers reduce their exposure.
The exodus of ship insurers from Russian-Ukrainian risks is accelerating
Discussions over tariffs and wartime exclusions have made negotiations between insurers and reinsurers tense this year, according to industry sources.
This year’s renewal season was “one of the toughest. ..the sector experienced,” said Guy Carpenter, adding that the process had been “extremely late”.
The projected losses do not include the impact of the most recent natural disasters in December, added Guy Carpenter.
(Reporting by Carolyn Cohn; Editing by Andrew Heavens and Louise Heavens)
Topics
Disaster
loss of profit
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