Insurers, reinsurers may have underestimated their cat losses by $70 billion: S&P official
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Taoufik Gharib, senior director, North America insurance ratings, at U.S.-based S&P Global Ratings Inc., said that there is a gap of nearly $70 billion dollars between the catastrophe loss estimated by reinsurers and risk modelers for the third quarter, The Royal Gazette reported. Mr. Gharib said that catastrophe modelers expected insured losses of about $100 billion from hurricanes Harvey, Irma and Maria, while the insurers and reinsurers' preliminary estimate totaled about $31 billion. There is a possibility that "insurers and reinsurers may have underestimated their losses and we could see some adverse reserve development," he added.
