Hurricane Ian could cost cats $115 billion in 2022

Swiss Re’s Group Chief Underwriting Officer, Thierry Léger, said: “Modeling evolving frequency and severity trends is key to enabling the insurance industry to respond to increased volatility and demand. Pricing needs to reflect the actual risks. In this complex environment, Swiss Re stands ready to support its clients with its strong balance sheet, risk tolerance and expertise.”

Hurricane Ian is the costliest natural catastrophe of 2022, with preliminary insured losses estimated at $50 billion to $65 billion. Ian said he landed in Florida as a Category 4 storm in September, bringing high winds, storm surges and torrential rains. The Swiss Re Institute estimates that Ian is the second most expensive insured loss on record, surpassed by 2005’s Hurricane Katrina.

Hurricane Ian isn’t the only natural disaster to wreak havoc in 2022. February and he Floods caused by heavy rains in Australia in March were the country’s most expensive natural disasters ever, at an estimated US$4 billion. According to the Swiss Re Institute, hail storms in France caused an estimated €5 billion (approximately US$5.25 billion) in insured losses.

Martin Bertog, Head of Catastrophe Risk at Swiss Re, said: “In 2022, extreme weather events will lead to high claims losses, rising risks and spreading across all continents. We are backing it,” he said. “Urban development, accumulation of wealth in disaster-prone areas, inflation and climate change are important factors, and extreme weather continues to increase losses from natural disasters. Hurricane Andrew made landfall 30 years ago. US$20 billion in losses was unprecedented in 2011. There have now been seven such hurricanes in the last six years.Swiss Re used natural catastrophes to predict trend risk explicitly. We are continuously adapting our model so that, like our new Hurricane model, we are able to stay ahead of the curve and offer sustainable coverage to our customers.”

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