The more dramatic the headlines, the more sanguine the markets seem to get. The latest estimates for insurance losses jumped from $20bn-$35bn to $40bn-$60bn according to Risk Management Solutions, yet insurance stocks barely quivered.

True, they have already fallen: 2 to 3 per cent for primary insurers and roughly 7 per cent for the reinsurers since the end of August. Furthermore, one-off losses are in the nature of the insurance beast. And while $60bn sounds like a lot, the insurance industry has easily enough capital, with more than $400bn in the US alone.