Swiss Re Group is currently estimating claims flowing from Hurricane Sandy will be about US$900 million, net of retrocession and before tax, although the company emphasizes approximations are subject to change.
Hurricane Sandy affected the Caribbean and the Bahamas. In the United States, Sandy made landfall near Atlantic City on Oct. 29, causing high winds and storm surge that resulted in extensive flooding and loss of life and property, notes a statement from Swiss Re Group, a wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer.
Hitting the densely populated northeast coast of the U.S., “led to prolonged power outages, disruption to public transport and damage to other infrastructure that have made recovery efforts very difficult,” Matthias Weber, group chief underwriting officer, says in the statement.
“It also complicates the loss assessment process. Our claims estimate, therefore, is subject to a higher than usual degree of uncertainty and may need to be subsequently adjusted,” Weber points out.
Swiss Re reports estimates are affected by complex loss assessments, especially in business interruption coverage.
“Swiss Re will support our clients and partners in tackling this challenging situation, as we have done in so many instances in the past,” adds group CEO Michel Liès.
Total insured losses from Hurricane Sandy are estimated at between US$20 billion and $US25 billion, adds the Swiss Re statement.