Global insurance losses for natural catastrophes are projected to reach $112-billion in 2022, reinsurance broker Guy Carpenter said on Friday, driven by the impact of Hurricane Ian which hit Florida earlier this year.
Flood and hail in Europe, Australian floods and severe storms in the United States also contributed to the total, Guy Carpenter said in a statement.
Hurricane Ian and other natural catastrophes caused an estimated $115-billion of insured losses so far this year, well above the 10-year average of $81-billion, reinsurer Swiss Re estimated earlier this month.
Reinsurance rates are expected to rise sharply at the key Jan. 1 renewal date as a result of losses related to Hurricane Ian and the war in Ukraine, industry sources say.
Ship insurers have excluded Ukraine, Russia and Belarus from war liability policies as reinsurers scale back their exposure.
Discussions about rates and war exclusions have made negotiations between insurers and reinsurers tense this year, industry sources say.
This year’s renewal season was “one of the most challenging … the sector has experienced,” Guy Carpenter said, adding that the process had been “extremely late.”
The projected losses do not include the impact of the most recent December natural catastrophes, Guy Carpenter added.