FEBRUARY 13, 2020 01:57 PM (EST)
AM BestTV: Australian Fires Could Impact Earnings, Reinsurance Markets, Says AM Best Associate Director
FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 13, 2020 01:57 PM (EST)
Estimated losses from the ongoing Australian bushfires stands at AUD 2.2 billion (USD 1.5 billion), but is expected to increase.
“Ultimate loss estimates may take some time to be determined; however, it is clear that the current bushfires will be one of the costliest on record in terms of the volume of insured losses and from a property damage point of view,” said Rafferty.
Rafferty also addressed the capabilities of the Australian insurers to manage these losses.
“AM Best is of the view that insurers are well-placed to withstand these losses. In recent years, Australian insurers have demonstrated their ability to absorb natural catastrophe event losses. This is reflected in their strong capital positions and the support they receive from their reinsurance partners,” he said.
Additionally, Rafferty believes that the reinsurance market could be impacted by the bushfires.
“Meaningful losses passed on to reinsurers could result in upward pressures on reinsurance rates, as well as potential timing on terms and conditions, on upcoming renewals.”
To access a copy of this commentary, titled, “Australian Insurers Able to Contend With Mounting Bushfire Losses,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=293900
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