Hiscox points to insurance "price corrections" after taking $225m hit from Harvey and Irma

Oliver Gill
Follow Oliver
Hurricane Harvey Slams Into Texas Gulf Coast
Insurance rates have already been impacted by this summer's spate of natural catastophes (Source: Getty)

Insurer Hiscox this morning revealed hurricanes Harvey and Irma are to cost the firm $225m (£168m).

The losses are within the parameters of what Hiscox models for such events, the firm said.

Boss Bronek Masojeda said the storms were "already having an impact on rates in the global insurance market".

He added: “Paying claims from devastating events like these is precisely what we are here for.

"Our focus is to get our customers back on their feet as quickly as we can.”

Read more: Lloyd's insurer admits to $275m bill for Harvey, Irma, Maria and quakes

On Friday, fellow Lloyd's stalwart Beazley said Harvey, Irma and the recent earthquakes in Mexico would cost the firm up to $275m.

Most catastrophe insurers only retain a fraction of the risk that they write policies for. They offload such risk to larger reinsurers, but some also have their own reinsurance divisions.

Hiscox said it had "depth of cover in our reinsurance programme".

Masojeda added:

After a number of years of rate reductions, we are starting to see price corrections, most acutely in affected lines such as large property insurance and catastrophe reinsurance, which we expect to spread to non-affected lines.

"Although these are huge insured events, sadly, they also highlight the lack of cover in places.”

Read more: Lloyd's of London predicts $4.5bn of losses from recent hurricanes

Related articles