Claims and losses

Slow weakening is forecast during the next few days, but Lee is likely to remain a large and dangerous hurricane into the weekend, the update noted.

European and Bermudian reinsurers are expected to be the most favorably affected by the current environment.

Data from the broker indicated that around 70% of global losses were driven by SCS, with events in the US causing $35bn of insured losses over H1.

Alongside a parametric scheme, a further insurance pool providing up to $1bn in cover will recoup funds to benefit the post-quake recover.

However, most P&C insurers will still miss their cost of capital targets and as a result, rate hardening and capacity constraints are expected to continue into 2024, according to Swiss Re.

The insurance industry should be prepared to experience more than $100bn of insured losses from natural catastrophes every year, Verisk warned.

The insurance company had set out plans last summer to expand its market share in Florida.

Reinsurance underwriting discipline will not subside even as reinsurers’ willingness to deploy capital increases, the broker said.

Tropical Storm Lee is set to strengthen to an “extremely dangerous” Category 4 hurricane by the end of the week, although there are no coastal watches or warnings in place as yet.

Buyers expect rates to climb by 2.5% to 15%, continuing year-on-year hikes since 2017.

The National Flood Insurance Programme could face a loss of around $500mn from the hurricane, according to the estimate.

The analytics firm said that the majority of insured losses will be attributable to wind.