Bermuda picks up $2.5b tab

Estimated reported losses from Hurricane Sandy currently stand at over $18 billion with international insurers covering nearly 50 per cent of claims from the storm, over $2.5 billion of which will come from Bermuda.

Bradley Kading, president and executive director of the Association of Bermuda Insurers and Reinsurers (ABIR), who was meeting in Washington, DC at the National Conference of Insurance Legislators (NCOIL) in Washington, DC: “Hurricane Sandy reaffirms why the United States needs a robust insurance market that is open to as many competitors as possible and encourages direct foreign investment — including Bermuda. Bermuda is the largest supplier of catastrophe reinsurance to US insurers and has an excellent record of claims payment.

“From 2001 to 2012, Bermuda insurers and reinsurers have covered an estimated $35 billion in US catastrophe losses, including $2.5 billion in response to the World Trade Center tragedy, $17 billion for Hurricane Katrina, and $2 billion following tornado outbreaks from 2010 to 2012.

Mr Kading added Bermuda has led the reinsurance industry in developing a scientific approach to catastrophe underwriting, innovating to better serve customers and establishing highly regarded enterprise risk management programmes. Furthermore, the Bermuda Monetary Authority applies a robust set of regulatory solvency requirements to these reinsurers.

He said: “This attention to detail helps the major reinsurers retain their important credit ratings, better meet shareholder expectations and demonstrate resilience to global customers.

Hurricane Sandy was not the first nor will it unfortunately be the last catastrophe to strike the United States.

“Bermuda insurers and reinsurers stand ready to support US families, businesses and communities as they review their claims in the aftermath of future storms.”