Karen Clark & Company

Portfolio rebalancing was not triggered last week, but investors are now distracted and nervous.

KCC is part of the CDI’s review into creating a public wildfire cat model for insurers.

The bulk of the losses relate to wind damage.

The insured loss from Beryl in the US was pegged at $2.7bn.

Karen Clark & Company said the majority of insured losses will incur from US wind and storm surge damage, apart from just under $5mn which was attributed to winds across the Caribbean.

Insurance Insider has gathered data on geographical areas prone to cat events, which are outside of southeastern US states, that keep weather experts awake at night.

The modelling firm noted a shift towards stronger hurricanes making landfall.

The modeler warned that climate change was increasing the chances of $20bn, $30bn and $40bn loss events.

Climate change is likely to have already driven up insured losses from hurricanes by 11%, and could raise annual windstorm losses by an additional 10-19%, according to the latest white paper from Karen Clark & Co (KCC).

Total economic losses are thought to be around $900mn.

The storm was the earliest named E storm, forming nearly six weeks earlier than average.

The modelling companies issue lower ranges than KCC’s earlier $4.4bn forecast.

Louisiana, Mississippi and Georgia are likely to bear the brunt of the insured losses.

The estimate excludes NFIP losses, offshore assets, and the potential impact of Covid-19.

Uncertainty remains over energy sector and Covid-19 impact on loss adjusting and rebuilding.

The estimate for the third named storm of the season covers privately insured wind and storm surge damage.

Modelling firms said there were too many variables to quantify the impact, but many factors could escalate claims.

The facility had originally estimated that it would pay out $10.9mn.

The (re)insurance industry should expect a Japanese loss of over $15bn at least once every 20 years, the risk modeller said.

Most losses will come from the Bahamas which are likely to account for just over $3.6bn of losses, the modeller said.