Reinsurers could cover around 4/5th’s of losses related to Hurricane Beryl in the Caribbean

Reinsurers are expected to cover around four-fifths of the loss in insured property damage caused by Hurricane Beryl in the Caribbean, which is estimated US$500-million, according to Ian Chinapo, Head of Guardian Holdings Limited (GHL), a local insurer.

On July 1, Hurricane Beryl made landfall on the island of Carriacou in Grenada as a high-end Category 4 hurricane, causing total devastation.

It entered the Caribbean Sea with more intensity, peaking as a Category 5 storm with maximum sustained winds of 165 miles per hour.

The hurricane then weakened as it passed south of Jamaica on July 3, and then the Cayman Islands, before causing further damage in Mexico and the United States in late June and early July.

This event caused an estimated US$500-million loss in insured property damage, GHL stated, with the insurer taking a hit of US$48 million before payment from reinsurers.

According to the insurer, reinsurers could cover around four-fifths of the loss.

Chinapo said: “For the industry, the estimate from our main brokerage partners across the region is a gross potential loss of about US$500 million. Guardian is estimating, for our book, US$48 million gross, which is before our reinsurance. Net of reinsurance, our potential maximum loss, or expense, is US$10 million.”

The estimates of the hurricane damage are preliminary as claims are still being processed by the company, Chinapo cautioned at the time he shared the news.

“We are working very hard to get the claims settled very quickly, given the impact on our customers and on the countries; so we are expecting that to be concluded within the months of August and September,” he stated.

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