Uri Could Signal Above-Average CAT Loss Year
Monday, March 15th, 2021 CatastropheAnalysts at Barclays believe that the unprecedented level of losses caused by February’s Winter Storm Uri in the US could be ‘setting the stage’ for another above-average catastrophe year for re/insurers.
Current industry loss estimates put the cost of Uri in the $15 billion to $18 billion range, which Barclays notes is not far short of the $20 billion to $25 billion loss range of 2017’s Hurricane Harvey.
However, the losses are being booked at a time of year when budgets typically incorporate much smaller natural catastrophe claims.
It therefore seems likely that re/insurers with exposure to the storm will exceed their Q1 cat budgets, which may be viewed as an ill omen for the year.
External References & Further Reading
https://www.reinsurancene.ws/uri-could-signal-above-average-cat-loss-year-barclays/
