Global insurance losses for natural disasters are expected to reach $112 billion by 2022, reinsurance broker Guy Carpenter said Friday, driven by the impact of Hurricane Ian that hit Florida earlier this year.
Flooding and hail in Europe, Australian flooding and severe storms in the United States also added to the total, Guy Carpenter said in a statement.
Hurricane Ian and other natural disasters have caused an estimated $115 billion in insured losses so far this year, well above the 10-year average of $81 billion, reinsurer Swiss Re estimated earlier this month.
Reinsurance rates are expected to rise sharply on the key renewal date of Jan. 1 due to losses related to Hurricane Ian and the war in Ukraine, industry sources say.
Marine insurers have excluded Ukraine, Russia and Belarus from war liability policies as reinsurers wind down their exposure.
The exodus of ship insurers from risks between Russia and Ukraine is gaining momentum
Discussions over rates and war exclusions have made negotiations between insurers and reinsurers tense this year, industry sources say.
This year’s renewal season was “one of the most challenging. ..the industry has experienced,” said Guy Carpenter, adding that the process was “extremely late.”
The expected losses do not include the impact of the most recent natural disasters in December, Guy Carpenter added.
(Reporting by Carolyn Cohn; editing by Andrew Heavens and Louise Heavens)
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