Claims and losses

As of December 31, 2021, policyholders have filed 434,633 claims of all types from Hurricane Ida, with 83% of them already closed.

The year broke a number of records in terms of insured losses.

This is the first natural catastrophe loss under the World Bank series of ILS deals since 2019.

The firm took $411mn of losses in December, up 940.5% year-on-year, but losses since April are still below the aggregate attachment of its latest Sanders Re deals.

The December redemption was raised to 7.5% of the fund from the usual 5%.

There is a lack of capacity for aggregate deals, and moves towards more named peril coverage.

Inflationary pressure and climate change meant the market effectively gave ground to cedants despite nominal price rises.

The year saw a substantial uptick in natural disaster losses compared with 2020 and 2019.

Pacific Gas and Electric Company told investors in November that it expects to recover $569mn from its insurers on a potential $1.15bn liability relating to the Dixie Fire in California.

Almost 130 insurers claim that the defendants failed to prepare for the power loss that caused “significant property damage” to carriers and policy holders.

The Australian insurer paid a mid single-digit rate increase for the reinsurance cover.

The fund’s net assets grew 12.2% to $983mn year-on-year.