HAMILTON, BERMUDA – Bermuda (re)insurers have estimated that they will incur gross claim losses of US$2.7 billion as payments to United States policyholders/cedants to cover the damaging effects of Winter Storm Uri, which wreaked havoc in the southern region of the US, particularly Texas. This is according to commercial market claims data collected by the Bermuda Monetary Authority (Authority or BMA) in May 2021. As of 31 March 2021, reinsurers had paid losses relating to Winter Storm Uri totalling US$62 million.
Based on publicly available estimates from catastrophe risk modellers and insurance industry analysts, (re)insurance losses resulting from Uri are expected to be in the US$10 billion to $20 billion range1. Consequently, Bermuda (re)insurers may end up incurring as much as 20% of the industry losses from Winter Storm Uri.