Zurich Insurance Group on Thursday, November 7, said that its exposure to Hurricanes Helene and Milton, which hit the United States this fall, will reach less than $360 million.
It is worth noting that insurers are currently facing increasing losses from natural disasters.
According to media reports, citing analysts, the total economic damage from the mentioned major hurricanes will amount to $55 billion.
It is also worth noting that in recent years, insurers have recorded an increase in loss rates from so-called secondary perils, including storms, hail, wildfires, and floods. Climate change is often called the cause of the corresponding natural accidents.
Zurich Insurance Group chief financial officer Claudia Cordioli stated that it is necessary to shift attention from focusing only on hurricanes to those secondary perils that are a factor of gradually increasing impact not only on financial results but also on society.
The mentioned company, which is the fifth largest insurer in Europe, reported that, according to third-quarter figures, its estimated pre-tax loss for Hurricane Helene is $160 million. The firm also expects that its preliminary pre-tax losses due to Hurricane Milton in the fourth quarter will be fixed at less than $200 million.
Gross written premiums at the company’s property and casualty business increased by 4% in the first nine months of the current year. The corresponding result is associated with the growth in rates in the commercial insurance and retail segments. The rates showed an increase of 5%.
It is worth noting that in recent years there has been an upward dynamic in insurance premiums. This tendency can be characterized as a kind of reaction to inflation and losses due to factors and circumstances such as the coronavirus pandemic, wars, and natural catastrophes.
Data from broker Marsh shows that global commercial insurance rates fell by 1% in the third quarter. It is worth noting that in this case, there is the first quarterly decline in seven years.
As we have reported earlier, Hurricane Milton to Cause Significant Economic Damage.
