Claims and losses

Initial loss estimates from convective storms and flash flooding place the economic impact in the hundreds of millions, although Aon warned losses may rise further.

The effort to resolve claims has been hampered by constraints on labour and materials.

The carrier’s 6% rate increases over 2022 YTD are “subsumed” by larger loss expectations, including rising inflation.

The reinsurer absorbed large nat-cat claims of $938mn in its H1 results.

US severe thunderstorms caused insured losses of $17bn during the first half.

The firm said it was well prepared for hurricane season with no gaps in reinsurance coverage.

South African flood losses, Canadian and European storms and second-quarter events in the US were cited as contributors to the deterioration.

Scor said it had cut cat exposure by 21% in 2022 – ahead of a previously announced 15% target – as its P&C business booked a Q2 operating loss of EUR140mn ($143mn), compared with a EUR406mn profit last year.

If no action is taken to reduce emissions, costs could soar by 87% in average annual losses to residential properties, JBA Risk Management said.

The insurer took a larger H1 gain from its ILS platform year on year, but fee income has dropped.

The insurer also completed the reorganization plan to consolidate its four Florida domiciled insurance carriers into two.

No matter what the outcome, further market dislocation is on its way – but there are various band-aid options that could help Florida insurers limp through hurricane season.