Lloyd’s revises its Harvey, Irma and Maria claims estimates

Lloyd’s has revised its net claims estimates for hurricanes Harvey and Irma downwards but it stressed that there remains a high degree of uncertainty around what the final bill might be.

It now believes that hurricanes Harvey and Irma will cost it some $3.9 billion and Hurricane Maria around $0.9 billion.

Lloyd’s also said the market has so far paid almost $900 million in claims for Harvey, Irma and Maria.

Jon Hancock, Lloyd’s performance management director, said: “As more information has become available the latest analysis shows claims in the Lloyd’s market are less than our preliminary estimate. The claims estimate for Harvey and Irma has reduced approximately 10 percent from the precautionary figure we issued with our half year results last month. This is a developing situation and there continues to be a high degree of uncertainty around any claims estimate.

“We are experiencing one of the most active hurricane seasons this century and I am very proud of the way that the Lloyd’s market is responding to these events. Focus remains on getting policyholders back up and running, and we are paying claims quickly despite some very difficult conditions in the affected areas. Our ability to pay claims quickly even in difficult circumstance is a clear example of the valuable role that our sector plays in society.

“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 ($36 billion). We must remember that the Lloyd’s market is built for moments like this, with governments, businesses and communities all relying on us to help them rebuild their lives and livelihoods.

“The devastation caused by these disasters will certainly have an impact on 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.”

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