Bermudian primary insurers are likely to absorb only a small portion of the losses stemming from Hurricane Gonzalo.
This is according to rating agency AM Best which said that it does not expect any rating changes for domestic insurers following the hurricane.
The rating agency expects that the brunt of the storm’s financial impact will fall on the reinsurance market since primary insurers on the island are heavily reinsured with small and manageable retentions.
AIR Worldwide placed loss estimates for Gonzalo at $200-$400 million, while domestic insurers are estimating that combined insurable losses from Hurricane Gonzalo and Tropical Storm Fay will be $50-$150 million.
Hurricane Gonzalo, Bermuda, AM Best