Bermuda insurance market may fund quarter of hurricane losses

Bermuda's insurers and reinsurers may fund a quarter or more of approximately $100 billion in aggregate insured losses from hurricanes Harvey, Irma and Maria, according to preliminary estimates from the Association of Bermuda Insurers & Reinsurers, the association said in a statement late Tuesday.

“Based on historical experience, regulatory stress tests, and publicly announced preliminary estimates by listed companies, ABIR estimates the island's insurance market may absorb 25 percent or more of insured-loss claims. Preliminary aggregated loss estimates put the total at approximately $100 billion for the three storms,” the association statement said.

The association added that its members have already begun to pay claims on last month's record-setting storms and began wiring hundreds of millions of dollars to primary insurance company accounts impacted by the disasters shortly after the storms ravaged regions across the Caribbean and United States.

Advancing cash for liquidity so insurance clients can pay consumer claims is part of the value reinsurers provide, explained Brad Kading, the association’s president and executive director. 

"Bermuda's global insurers and reinsurers first and foremost express their sympathy to those suffering from the loss of life, property, food and water from the recent storms," Kevin O'Donnell, ABIR chairman, and president and CEO of RenaissanceRe Holdings Ltd., said in the statement.

"At this time, we are helping in the best way we can — by forwarding billions of dollars to help begin and sustain recovery in Texas, Florida, Puerto Rico, the U.S. Virgin Islands and the rest of the affected Caribbean and Southeast U.S.,” he added.