Hiscox has announced that it could be facing up to $150 million in net claims in the wake of Hurricane Harvey, which struck South-Eastern Texas at the end of August this year.
According to Hiscox the estimate assessment is within the group's modelled range of claims for an event of this nature, adding that reinsurance protections for the Group remain substantially intact.
“Insurance exists to help individuals and companies recover from the devastation caused by events like this, and our priority is to pay claims quickly so that they can do that,” said CEO Bronek Masojada. “At the same time, Harvey has also highlighted the lack of flood cover for large parts of the US market.
“2017 will be an expensive year for natural catastrophes but the industry can cope. Insurance remains a cyclical business and after a long period of price reductions, insurance rates in the affected areas and in specific sectors such as large property are likely to increase. In the wider global insurance market for large risks, we expect rates to stabilise and begin to increase.”
Hiscox pointed out that the estimate is based on an expected insured market loss of $25 billion excluding the government-backed National Flood Insurance Program (NFIP):
Harvey was the first major hurricane to hit landfall in the US in over 12 years. The hurricane stalled over Houston creating a prolonged period of flooding for the region. Hiscox has two principal areas of exposure: through reinsurance business and through insurance lines, including flood cover for homeowners and businesses.
Hurricane Harvey, Hiscox, National flood insurance program, NFIP, Bronek Masojada, US, Bermuda