(Reuters) – Global insured losses from natural catastrophes are expected to reach $112 billion by 2022, reinsurance broker Guy Carpenter & Co. said. LLC on Friday, driven by the effects of Hurricane Ian, which hit Florida earlier this year.
Flooding and hail in Europe, Australian flooding and severe storms in the US also contributed to the total, Guy Carpenter said in a statement.
Hurricane Ian and other natural disasters have caused an estimated $115 billion in insured losses so far this year, well above the 10-year average of $81 billion, reinsurer Swiss Re Ltd. estimated. earlier this month.
Reinsurance rates are expected to rise sharply at the key renewal date of Jan. 1as a result of losses related to Hurricane Ian and the war in Ukraine, industry sources say.
Marine insurers have excluded Ukraine, Russia and Belarus from war liability policies as reinsurers reduce their exposure.
Discussions about rates and war waivers have made negotiations between insurers and reinsurers tense this year, industry sources say.
This year’s renewal season was “one of the most challenging” the sector has experienced, Guy Carpenter said, adding that the process had been “extremely late.”
The estimated losses do not include the impact of recent natural disasters in December, Guy Carpenter added.