During a panel discussion at the ILS Bermuda Convergence 2022 event yesterday, Michael Millette told the audience that while the quantum of loss matters after hurricane Ian, with such a range of estimates, the risk is that cedents will all seek to trap capital as if the industry impact is going to be $70 billion anyway.
With the industry now discussing a very wide range of modelled loss estimates for hurricane Ian, from as low as $40 billion, right the way up to $74 billion or more, the subject of whether that range matters came up.
Michael Millette, Founder and Managing Partner of Hudson Structured Capital Management, explained, “It matters because, regardless of whether it ultimately is 40 or 60, every cedent is going to seek to trap as though it’s 70. And that’s a big deal.
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