Hurricane Ian is expected to generate over $2.3 bn to $3bn in claims to the Lloyd’s market according to Lloyd’s.
In the announcement, Lloyd’s estimated that its net market share of the total industry loss will be 3-5%. The estimate was based on Q3 data provided by Lloyd’s Syndicates.
Hurricane Ian wreaked havoc on Florida, with total losses hitting $50 billion, making it the costliest hurricane in Florida’s history according to the National Oceanic and Atmospheric Association.
Furthermore, as Russell have recently reported, Ian inflicted significant damage to the “specialty classes” with airports, energy grids, entertainment parks and ports all significantly damaged by the hurricane.
Beyond Lloyd’s, the global hit to (re)insurers from Ian is even larger, as highlighted by analysts at JP Morgan, who disclosed that the total claims from the major European, American and Bermudian (re)insurers from Ian stood at $20 billion. In their analysis, as reported in Reinsurance News, Morgan reported that claims would total $20 billion.
Even at the lower end of $50bn, Ian would be the second costliest hurricane of all time, behind the $90 billion (adjusted for 2021) caused by Hurricane Katrina and ahead of 2017’s Hurricane Irma, which had losses of $37 billion according to various media sources.
Insurers and (re)insurers have had to deal with a series of large Nat Cat events throughout 2022 including Australian Floods, French hailstorms and Typhoon Nanmadol, all generating losses throughout the year.
JP Morgan analysts estimated that Insured Nat Cat losses from 2022 to be between $120 billion and $130 billion, making it the fourth costliest year of all time.