Kroll Bond Rating Agency (KBRA) releases research on the forecasted "extremely active" Atlantic hurricane season. Although Hurricane Isaias was relatively weak and did not make landfall in Florida, KBRA believes this storm will have longer-term implications for the insurance market, particularly with respect to smaller regionally concentrated companies.
On the heels of Hurricane Hanna, which was the earliest hurricane to make landfall in Texas since 2008, Hurricane Isaias will add to an already busy catastrophe year. With catastrophe losses in the second quarter approximately 25% higher than the previous 10-year average, Q3 losses are already mounting, with the peak of hurricane season still ahead. Although Hurricane Hanna’s insured losses will likely not exceed $1 billion, losses for Hurricane Isaias, which brought tropical storm force winds along much of the U.S. East Coast, will have a cumulative effect and longer-term effects.
Further, hurricane forecasters at the Colorado State University (CSU) Tropical Meteorology Project team—one of the leaders and pioneers of hurricane forecasting—updated its Atlantic hurricane seasonal forecast to "extremely active" from "very active" on August 5. As KBRA previously noted, June 2020 catastrophe reinsurance renewals were challenging for companies with catastrophe exposure and poor loss history.
KBRA believes that, regardless of loss activity for the remainder of 2020, primary property writers will be further challenged to place their catastrophe reinsurance in 2021.
Click here to view the report.
About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.
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