December CAT Losses Almost Five Times Greater Than Average
Monday, January 31st, 2022 CatastropheGlobal insurance and reinsurance market losses from natural catastrophes and severe weather events were almost five times the ten-year December average, as the impacts of the US tornado outbreak and Colorado wildfires continued to put the pressure on re/insurers, according to analysts at investment bank Jefferies.
Jefferies estimates the US tornado outbreak in December will cost the industry around $3.9 billion, while the analysts expect the Colorado wildfires could drive as large a loss as $2.5 billion, which is above other current estimates but aligned with insurance and reinsurance broker Aon’s comments that it will be the most costly US wildfire event outside of California.
‘Unlike the September-November period, when claims were surprisingly benign, December’s contribution to the global insured loss total has been especially high, making it the fourth largest monthly loss of the year,’ the analysts explained.
