ABIR To Pay Billions For Hurricane Recovery

December 12, 2022

Member companies of the Association of Bermuda Insurers and Reinsurers [ABIR] “will shoulder a significant portion of the billions of dollars in insurance claims arising from Hurricane Ian, extending a long track record of support for Americans in times of crisis.”

A spokesperson said, “Projections by catastrophe modelers and analysts suggest that Category 4 storm generated total insured losses within the range of $50 billion to $65 billion, caused by wind, storm surge and inland flood damage in Florida, the Carolinas, Virginia, and Georgia.

“The Bermuda market could bear up to a quarter of the total, according to a survey by the Bermuda Monetary Authority, which found that 69 Bermuda re/insurers — including ABIR’s members — estimate that they will pay a total of $13 billion to US cedants and policyholders to cover Hurricane Ian losses.”

Marc Grandisson, chairman of ABIR and CEO of Arch Capital Group Ltd., said, “Hurricane Ian was a devastating experience for millions of Americans. We feel for those who lost loved ones, who suffered damage to their properties and whose livelihoods were disrupted.

“We are proud that the backing of Bermuda’s re/insurers is once again providing billions of dollars in claims payments to support stricken communities through restoration and recovery, helping Americans to get their lives back on track. The Bermuda market’s proven value proposition is that we are there for Americans in their time of greatest need.”

The spokesperson said, “The Bermuda market has a decades-long record of bearing a substantial share of insured losses from the costliest natural catastrophes in US history. Bermuda re/insurers picked up some 30% of losses from the devastating hurricane seasons of 2005 [Katrina, Rita and Wilma] and 2017 [Harvey, Irma and Maria]; as well as 23% of the losses from 2018 Hurricane Michael and 20% of those related to 2021 Winter Storm Uri.”

John Huff, CEO of ABIR, said, “By backing insurers in the US and around the world, Bermuda reinsurers enable the pooling of global risk and promote the stability of property insurance markets worldwide. The trend of more intense and frequent extreme weather events only emphasizes the Bermuda market’s global relevance.

“With a 30-year track record of natural catastrophe risk coverage leadership, Bermuda re/insurers have built an unparalleled industry talent base that attracts risk capital and produces innovative solutions to complex problems, equipping Bermuda to lead from the front in climate risk finance.”

The spokesperson said, “Huff, a past president of the National Association of Insurance Commissioners [NAIC], the US standard-setting body for state insurance supervisors, will attend the NAIC Fall National Meeting to be held in Tampa, Florida, from December 12 to 16.”

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