...and after several relatively benign wind storm years, could there be worse to come?
The news is pretty full of natural disasters at the moment with possibly the costliest wildfire on record in Canada, more major earthquakes in Japan, volcanoes erupting in Indonesia and Hawaii (the former causing numerous deaths), landslides (Sri Lanka), and cyclones (Bangladesh).
Although there has been talk of some these events hitting the Cat Bond Market, in most cases the economic impact of these catastrophes is far beyond the protection offered by current (re)insurance coverage.
I'm not seeking to open a further debate about the protection gap, because as has been recently discussed, insurance may not be the most cost effective solution for these events. However, if 2016 sees some Katrina-esque weather systems, could some of the pressure on Cat (Re)Insurers be alleviated, or is there still simply too much capital targeting the space?
Whatever your perspective, some interesting additional comment from the mainstream press: http://www.theguardian.com/global-development/2016/apr/24/world-heading-for-catastrophe-over-natural-disasters-risk-expert-warns
The true extent and cost of the damage caused by April’s earthquakes that struck the Kumamoto region of Kyushu, Japan is becoming clearer, with the Japanese government saying it expects the total economic loss to be up to $42 billion. The Japanese government’s Cabinet Office said that it expects the damage, mainly to dwellings, from the Kumamoto earthquakes will cost the nation between JPY 2.4 trillion and JPY 4.6 trillion, which is a range of $22 billion to $42 billion.