Towers Perrin has predicted that the reinsurance industry can expect...

Towers Perrin has predicted that the reinsurance industry can expect $20bn hurricane losses every 15 years.

A report by Towers Perrin's consulting arm Tillinghast and reinsurance units projects that Katrina will end up generating $40bn to $55bn in private insurance payments, making it by far the most expensive insured catastrophe in US history.

The report, 'Katrina: Analysis of the impact on the insurance industry', also anticipates that future hurricane losses could be equally high, given the growing coastal property exposures and forecasts of increased hurricane activity.

Tillinghast expects to record losses of up to $25.3bn on commercial lines, $19.3bn for personal lines, $6bn for marine and energy lines, $3bn for liability and up to $1bn on other lines.

Topics