Home / Articles / Disasters to cost global insurers $95bn

Disasters to cost global insurers $95bn


Insurers are expected to take a total hit of $95bn (£72bn) as a result of a hurricanes Harvey, Irma and Maria and earthquakes in Mexico, according to the world’s second largest reinsurer Swiss Re.

The Zurich-based business put its own claims burden from the disasters at $3.6bn in the third quarter, including $175m related to Mexico.

Reinsurers such as Swiss Re, Munich Re and Hannover Re are financial backstops for insurance companies, helping them pay for such large damage claims in exchange for part of the premiums.
Swiss Re’s finance director David Cole said: “Swiss Re maintains a very strong capital position and high financial flexibility to support our clients’ needs.”

Image: Swiss Re is the world’s second biggest reinsurer
At least 369 people were killed in the earthquake that struck central Mexico last month, which followed another major tremor in the southeast of the country two weeks earlier.

Hurricanes Harvey, Irma and Maria hit the US and the Caribbean in August and September, resulting in widespread damage and hundreds of deaths.
Swiss Re estimated the total insured market losses of the industry caused by these events at $95bn.
Previously, Swiss Re has estimated that for 2016 the total global insured losses from disasters was $54bn, in a year which saw a series of earthquakes and a major wildfire in Canada.
Total economic losses – a greater number because they were not all insured – were estimated at $175bn.

Source: Sky

About Business Ideas UK

My name is Joel Bissitt. I have been an entrepreneur for 24 years and have run many small businesses across various sectors. For the last 10 years I have worked mainly within online media, franchising and small business start-ups. I am an author of various websites including Franchise UK https://www.franchise-uk.co.uk

Check Also

Hammond to back help for 'scale-up' champions

The Chancellor will give his backing next week for a multibillion-pound support package aimed …

Free Franchise Guide

Free Franchising Guide

 

Interested in buying a franchise? The our FREE Franchise Guide is a must! The guide contains lots of information to help you decide if franchising is right for you.

 

To claim your Free Franchise Guide click here