MUNICH Re: 2017 might see one of highest loss experience in history so far
In the presentation, Hermann POHLCHRISTOPH, member of Munich Re's Board of Management, emphasized that the 2017 hurricane season has been very active, the strong storms being above the average. "The series of the 5 strongs major hurricanes is unusual, but not totally out of the ordinary compared with the previous years".
The MUNICH Re representative said that based on various estimates, it expect that the total insured market loss from recent events to be around USD 100 - 120 billion. "This means that 2017 might see one of highest loss experience in history so far".
Over the past 37 years, higher insured damages occurred in 2005 (caused by Hurricane Katrina) and in 2011 (by the earthquake in Japan).
"The huge gap that still exists between economic and insurance losses following natural catastrophes, especially in emerging countries but even in high developed countries, is evidence of the great potential that companies and countries have to improve risk management".
MUNICH Re representative said that, as a result of natural disasters, reinsurance tariffs, especially on natural disasters business line, could increase. Hermann POHLCHRISTOPH said that as a result of 2005 and 2011 natural hazards, there were three renewal periods when tariffs increased, "but no more than that".