May 9, 2017 by Canadian Underwriter
Tropical Cyclone Debbie – the initial loss estimate for which PERILS AG puts at AU$1,116 million – “underpins the need for reliable natural catastrophe insurance data for Australia,” suggests Darryl Pidcock, head of PERILS Asia-Pacific.
“Debbie clearly exceeds our property market loss reporting threshold of AU$500 million and made a significant impact on the insurance and reinsurance industry,” Pidcock notes in a statement Tuesday from PERILS AG, which provides industry-wide natural catastrophe exposure and event loss data covering 16 countries, including Canada.
In early April, the Insurance Council of Australia reported that it estimated insured losses to date from Debbie at AU$306 million from 28,000 claims.
Swiss Re, or its part, noted that same month that it estimates its claims burden from to be approximately US$350 million, net of retrocession and before tax, while the total insured market losses associated with the event is estimated at around US$1.3 billion.
Swiss Re reported at the time that Debbie is expected to result in a higher share of large commercial and corporate losses compared to similar events in the past.
The cyclone hit Australia Mar. 28 and made landfall as a category 4 hurricane, bringing with it estimated 10-minute sustained winds of almost 200 km/h to some areas, and represented the strongest such event to strike the region since 2015.
“The main disaster zone stretched more than 990 km from the point of landfall, reaching northern New South Wales,” Swiss Re noted.
Debbie has been cited by a number of insurers and reinsurers in recent 2017 Q1 financial results:
Eduard Held, head of products at PERILS, says he expects the second loss report – scheduled for June 28 – “will help to further improve the industry’s understanding of Australian tropical cyclone risk and, ultimately, facilitate its tradability.”
The second loss report will include an update of the country-wide market loss and the number of affected polices,” Held notes, while subsequent loss reports (PERILS issues four) will offer loss data at four-digit postcode level and by property lines of business.