Reinsurance broker Guy Carpenter has projected huge losses for the insurance industry following a number of natural catastrophes that took place in 2022. The broker commented that the industry is set to make losses of up to $112 billion globally.
The financial hit is predominantly driven by Hurricane Ian but other events such as Australia’s floods, hailstorms and Floods in Europe and storms in the US as well as the war in Ukraine have also contributed to the total. Swiss Re and Reuters have also forecasted similar losses with the latter suggesting that reinsurance rates will likely jump as a result.
Dean Klisura, President and CEO of Guy Carpenter, said, “Looking past the renewal of January 2023, it’s important to remember that we have been at crossroads before,” said Guy Carpenter president and CEO Dean Klisura. “In prior reinsurance cycles, significant catastrophe loss events such as Hurricane Andrew, the attacks of September 11, 2001, and Hurricanes Katrina, Rita and Wilma were the catalysts for market corrections that preceded new capital entering the sector.
“It is imperative that the industry stay focused on providing workable client solutions, thorough coverage and balanced pricing for the long-term sustainability of cedents and markets. Our top priority is ensuring that clients are getting the coverage and clarity they require in order to conduct their business.”