Hiscox facing $225m claims due to Irma and Harvey

Insurer Hiscox has outlined the impact of hurricanes Harvey and Irma, believing that the natural disasters will cost it about $225 million (£168m) in claims.

The Bermuda-headquartered company said the natural disasters are already affecting rates

The FTSE 250 firm said the estimate was within the modelled range for a disaster of that scale and based on an insured market loss of $35 billion for Hurricane Irma and $25bn for Hurricane Harvey.

The latter have devastated parts of the Caribbean and US, with insurers expecting a total hit of about £150bn.

Hiscox chief executive Bronek Masojada said the natural disasters are already affecting insurance rates.

He added: “These events are already having an impact on rates in the global insurance market, particularly in affected areas and specific sectors. After a number of years of rate reductions, we are starting to see price corrections.”

Earlier this month, Hiscox warned that “natural catastrophes” would run up a big bill for insurers this year, but said the sector could cope.