Paid and reserved claims related to damage caused by the September 3 storm have reached €5 million, the Malta Insurance Association has told The Times Business.
Information supplied by the MIA’s 18 principal and agent members confirmed expectations that last month’s storm would result in the highest insurance storm payout since savage weather on September 15, 2003, cost insurers €14 million.
The €5 million settles 1,844 claims and compares to just under half of 2011’s €10.93 million total gross written premiums.
Businesses claimed €3.2 million or 65 per cent of the storm payout for damage related to property and equipment among a range of commercial claims. Non-life – mainly household – claims amounted to €1.05 million (20 per cent); 212 motor claims reached €0.5 million. The maritime community seems to have suffered the least damage with claims reaching €80,000.
Just over €520,000 was paid out for damage caused by lightning, mostly involving power surges in households.
“The bulk of these €5 million worth of claims were made by the general sector which excludes motor, health and life,” MIA director general Adrian Galea explained.
“In all of 2011, the general sector saw just €11 million worth of claims. It is a clear indication, if any were needed, of the relevance of the insurance sector. These claims were made by a pot of people who are insured. The market in Malta remains considerably under-insured with people taking out insurance mostly when it is mandatory, such as life cover linked to mortgages. There may be many people who are footing the bill for storm damage themselves.”
Middlesea Insurance plc president and chief executive Alfredo Muñoz Perez, who chairs the MIA’s general sector business council, said it was unlikely this year’s storm payout would significantly affect renewal premiums.
“Losses would obviously have to be recovered,” he said, “but it is likely any increase in premiums would be moderate. Insurance firms are looking to increase their business and they will strive to retain and grow their customer base. In any case, we had not seen any significant increase after the storm in 2003.”
Trends identified in the MIA’s annual report for 2011-2012 revealed life and non-life insurance premium per capita in Malta decreased from €858 in 2010 to €814 in 2011. The EU average stood at an average €1,879 per capital in 2010. Of that €814, €314 was directed towards non-life insurance business last year.