El Nino should reduce catastrophe costs in Australia: Morgan Stanley

U.S.-based investment bank Morgan Stanley has said in a report that El Nino should bring about 40% lower than average catastrophe costs in Australia, reports Asia Insurance Review.

"Drier weather tends to result in lower catastrophe costs," said Morgan Stanley.

Less rainfall, warmer temperatures and increased risk of bushfires are the effects of El Nino in the country.

Insurers would benefit in spite of the increased risk of bushfires due to El Nino, added Morgan Stanley.

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