Storm Insurance Costs: How have weather conditions impacted recent profitability?
In recent years the general consensus within the insurance industry seems to be that storm experience has been favourable and in many cases has resulted in above normal insurance profits. With this in mind, this paper will investigate and report on the following:
– How recent weather patterns compare with averages over the longer term
– Relationships between weather data collected by the Bureau of Meteorology and actual insurance claims
– Quantification of the level of “above normal” profits
– Expectations for the future, with regard to both storm experience and the expected impact on future insurance costs
