Irma: too early to see an effect on rates
The market needs to be cautious about
what the full impact of hurricanes Harvey
and Irma will be, in terms of both what the
final losses might be and how these may impact
rates, according to Patrick Haveron, president
of Maiden Re.
Haveron told Monte Carlo Today that it was
still early days for the full impact of the two
storms, but he stressed that Maiden Re had a
non-catastrophe orientated business model.
While it expects some losses from the storms,
they should be within a manageable range.
“While Maiden is not a property cat
reinsurer, it carefully manages its occurrence
and aggregate exposure to mitigate its losses
in catastrophic events. Maiden will experience
some loss activity from these events, but we
believe it will be contained well within our
published occurrence and aggregate exposure
risk tolerances,” Haveron said.
He added that it was too early to say whether
rates across the industry would go up as a result
of the storms but there could be something of
an upwards bias when it came to the arc of
There was also a chance that some of
the industry loss estimates could be on the
low side and that they might increase as more
information comes in.
“It is too early to know whether rates will
respond,” he commented. “Is it the gamechanger
that such a storm could have been?
The first indications suggest it is not, but I
do think it could add some firmness to the
catastrophe rate environment.
“The thing that we particularly don’t know
is what segments of the market will be most
impacted. Is it in traditional markets, both
global and US? Is it in the ILS markets? A
number of observers certainly think it will
impact those markets at this point. Will there be
any additional firmness beyond the catastrophe
markets? It’s too early to tell.”
Haveron concluded by saying that no matter
what is the final outcome of the storms, Maiden
Re is well positioned within the market. n
INNOVATION & EFFICIENCY