Hiscox has undertaken a first estimate of the impact of the 2011 New Zealand earthquake and the 2011 Queensland floods. The Group also makes an early comment on the Japanese earthquake and tsunami of 11 March.
Based on an insured market loss of US$10 billion for the New Zealand earthquake, and US$2.4 billion for the floods in Queensland, Hiscox estimates net claims of approximately £60 million and £15 million respectively.
Any estimate of the insured loss from the very tragic and severe earthquake in Japan is still at an early stage so considerable uncertainties exist. Hiscox’s exposure to this event is primarily through its underwriting of global and regional reinsurance and retrocessional programmes. Twice a year Hiscox publishes its expected losses for modelled catastrophes, including exposure to a Japanese earthquake. According to the latest published model1, from an insured market loss of approximately US$24 billion, Hiscox could incur net claims of between $60 million and $150 million with a mean loss of $100 million. Initial investigations suggest that this range remains valid.
Bronek Masojada, Chief Executive, commented; “The tragic impact of the Japanese earthquake is ongoing. Insurance exists to help rebuild communities after the havoc caused by catastrophes – paying claims after such events is what we are here for.”
Robert Childs, Chief Underwriting Officer, commented; “These events will only minimally impair our own reinsurance programme. In the reinsurance we underwrite, we have seen significant increases in rates for the affected regions and expect this pressure to become widespread.”
Source : Hiscox Press Release
