Bermuda re/insurers book $31bn in HIM claims
The 2017 hurricanes Harvey, Irma and Maria (HIM) led to recorded estimated losses of $31.2 billion net of reinsurance costs for Bermuda re/insurers, according to the Bermuda Monetary Authority (BMA).
Of the total amount, the US and Puerto Rico accounted for $30.6 billion net.
Bermuda reinsurers will be picking up 30 percent of the Harvey, Irma and Maria losses from this record-setting hurricane season, according to the Nov. 21 press release. The loss information includes both direct insurance and reinsurance.
The data includes 250 commercial insurers/reinsurers and alternative capital entities and insurance linked securities funds.
Craig Swan, managing director, supervision (insurance) said: “The $30 billion or 30 percent of US losses paid by Bermuda re/insurers demonstrates the key role Bermuda plays in the supply of risk capacity to that country. In fact, the survey results show the significance of the Bermuda re/insurance market’s contribution to the US over the past two decades. US insurers cede risk to Bermuda, diversifying that risk globally, making the cost of buying insurance – particularly property/catastrophe insurance – more affordable to customers living in US danger zones.”
Overall, Bermuda reinsurers paid out $208.7 billion to US policyholders and cedants for large catastrophes, related property insurance and general liability losses over the past 20 years, according to commercial market claims data collected by the BMA. From 1997 to 2006, claims payments to US policyholders and cedants totalled $56.0 billion; between 2007 and 2016, this increased significantly to $152.7 billion.
“This data and the European Union (EU) claims data released in September (over $70 billion was paid out by Bermuda reinsurers to EU policyholders and cedants over the past 20 years) demonstrates the valuable role Bermuda plays in diversifying risk globally in an increasingly competitive world marketplace,” Swan said.
According to the Standard & Poor’s Global Reinsurance Highlights 2017, 13 of the top 40 global reinsurance groups ranked by net premiums written are domiciled in Bermuda and regulated by the BMA.
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