AM Best expects insured losses from Hurricane Fiona in the countries hit hardest to datePuerto Rico and the Dominican Republicto be influenced by the duration of business interruptions due to power losses, but ultimately manageable for affected carriers.
According to the Best's Commentary, "Hurricane Fiona Insured Losses Depend on Recovery and Resilience," the top 10 insurers in Puerto Rico account for more than 90% of the market share for the auto, fire and allied lines, homeowners/farmowners and commercial multi-peril (property) lines. Two of these groups are extremely well-diversified, multinational insurers, but six of those top 10 companies are insurers with 100% of their exposure concentrated in Puerto Rico, representing approximately 43% of the market share for the aforementioned lines of coverage most at risk for sizable claim activity.
"It could take some time for claims adjusters in Puerto Rico to assess and estimate damages," said David Blades, associate director, industry research and analytics. "However, since Hurricane Maria in 2017, insurance companies on the island have taken significant action to manage their risk profiles better by tightening underwriting guidelines, sharpening risk management techniques, improving pricing and getting significant rate increases. Furthermore, most losses will be flood-related and not covered by a standard homeowner policy. Those losses would fall under the National Flood Insurance Program."
The Dominican Republic experienced widespread flooding and property damage, with popular tourist destinations left without electricity. However, a large part of the insurance portfolio is concentrated near Santo Domingo, the country's capital, with less distribution in the regions where a greater impact from the hurricane is expected.
To access the full copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=324224.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com
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Contacts:
David Blades
Associate Director, Industry Research and Analytics
+1 908 439 2200, ext. 5422
david.blades@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Sridhar Manyem
Director, Industry Research and Analytics
+1 908 439 2200, ext. 5612
sridhar.manyem@ambest.com
Al Slavin
Communications Specialist
+1 908 439 2200, ext. 5098
al.slavin@ambest.com
Olga Rubo, FRM
Senior Financial Analyst
+52 55 1102 2720, ext. 134
olga.rubo@ambest.com
