News

Kin Says Hurricane Ian Loss To Remain Within Reinsurance Tower

Kin Says Hurricane Ian Loss To Remain Within Reinsurance Tower

Kin Says Hurricane Ian Loss To Remain Within Reinsurance Tower

Kin Says Hurricane Ian Loss To Remain Within Reinsurance Tower

The gross loss from Hurricane Ian will be “far below” the peak of Kin Insurer’s $800 million total reinsurance tower, according to the US insurance and primary carrier, which specializes in residential insurance for places vulnerable to catastrophes.

ALSO, READ AXIS Estimates Hurricane Ian Loss At $160 Million

Approximately 6,800 claims pertaining to Hurricane Ian have been submitted to Kin so far.

However, as a result of its reinsurance coverage, Kin will only be responsible for $5 million in expenditures, which will be shared evenly between its captive reinsurer, Kincession, and its reciprocal exchange, Kin Interinsurance Network.

INVEST IN IRAs, SECURE YOUR FUTURE

Also possible is the involvement of Kin’s Hestia Re cat bond, which attaches $125 million in losses.

Kin Says Hurricane Ian Loss To Remain Within Reinsurance Tower

While it remains too early to say for sure whether Hestia Re will face a loss, assuming an average claim cost of $24,000 multiplied across the 6,800 claims reported by Kin would put losses at some $170 million and so well beyond the threshold to trigger the bond.

“Between our strong reinsurance program and our continuous investments in technology, operations, staffing, and partnerships, we were well-prepared to handle a major catastrophe like Ian,” said Sean Harper, CEO of Kin.

ALSO, READ Universal Estimates Ultimate Hurricane Ian Loss At $1B

Kin Interinsurance network finalized its reinsurance program for the year back in June, when it upgraded its coverage to offer 160-year first-event loss protection, or $770m in reinsurance coverage for hurricanes, across all states and policies.

This placement represented a 150% increase over 2021, which had included over $300m in reinsurance for hurricane events, and is backed by a panel of 40 reinsurers, including eight new partners, all of which have a financial rating of A- or higher from AM Best.

Kin Says Hurricane Ian Loss To Remain Within Reinsurance Tower

Kin says that it ultimately had 23,819 insured risks in the wind field footprint of Hurricane Ian with wind speeds of 50mph or higher, and was able to use imagery captured by airplanes flying after the storm to analyze 40,000 insured locations.

ALSO, READ Swiss Re-Launches Catastrophe Bond Focused Investment Adviser

“Technology and data science are really important in insurance, and they’re at the center of everything that we do to help customers and meet them where they are,” said Angel Conlin, Chief Insurance Officer at Kin. “We could accurately predict which policyholders were going to feel the effects of Ian, and our claims team was ready to provide immediate help and put them on a path to recovery.”


AllInsuranceHUB is a blog for everyone who seeks an informative, educative, and knowledge-based online insurance and investment community. We share Biographies, Top-notch investment tips, finance news, insurance policy details, and much more. You can read and share thoughts, ideas, and opinions on the finance market and get real-time updates from around the globe.

Leave a Reply

Back to top button
%d bloggers like this: