Bermuda reinsurers will incur $13 bn claim losses in payments to policyholders & US cedants

Bermuda reinsurers estimate that they will incur gross claim losses of more than $13 billion in payments to policyholders and cedants in the United States (US) to cover the effects of Hurricane Ian, around 25% of the total losses (between $50 billion and $75 billion).

This loss estimate is according to commercial insurers’ market claims data collected by the Bermuda Monetary Authority in November 2022.

Based on publicly available estimates from catastrophe risk modellers and insurance industry analysts, (re)insurance losses resulting from Hurricane Ian are expected to total between $50 billion and $75 billion.

The overall industry loss estimate for Hurricane Ian includes wind, storm surge and inland flooding losses in Florida, South Carolina, North Carolina, Georgia and Virginia.

The ability of US insurers to cede risk to Bermuda enables diversification of risk globally and it helps stabilise the cost of buying insurance – particularly property and catastrophe insurance – for customers living in catastrophe danger zones.