The response of the Federal Government to the Natural Disaster Insurance Review has just released, and the opposition is not pleased with what they have seen. The Government has decided that it will be introducing a new standard definition for the concept of a “flood”, and has announced that it is also considering making flood coverage a required inclusion in all standard homeowners’ and contents policies. However, for the majority of the 47 total recommendations that were made by the review, the Government deferred a decision, stating that it is…
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Italy turns to the insurance industry to help with crippling debt crisis
Italy is on the verge of a financial meltdown, which may have dire ramifications for the global economy. Investors and financial institutions have begun casting doubt on Italy’s ability to survive a financial disaster, and now the government is turning to the insurance industry for help. Italian officials are looking to adopt disaster insurance to help mitigate the impact of a potential economic catastrophe. The country’s debt – more than $2 trillion – could mean that it is beyond rescue, even for the insurance industry. The insurance industry in Europe…
Read MoreFlorida catastrophe fund faces major financial deficit
Florida’s hurricane fund is facing a major financial shortfall, according to Jack Nicholson, chief operating officer of the fund. The fund, which was established in the wake of 1992’s Hurricane Andrew, provides money to insurance companies in order to help those displaced by natural disasters. Nicholson issued a warning to state legislators this week that noted that the fund faces a $3.2 billion deficit and will not be able to offer aid in the event of a major storm for the immediate future. This year, the fund has provided insurers…
Read MoreReport calls for more action from consumers to help mitigate the costs of natural disasters
This year has been host to a large number of natural disasters that have born a heavy price tag to the insurance industry. While natural disasters may not be happening more frequently, they are certainly happening in areas of dense population, making the damage they cause astronomical. Consumers often look to the insurance industry to provide protections against natural disasters, but the industry can only do so much. A new report from the University of Pennsylvania’s Wharton School suggests that government policy, as well as consumer initiative, may significantly reduce…
Read MoreInsurance group spends more than $300,000 lobbying the federal government
The American Insurance Association spent more than $300,000 in lobbying the federal government during the second quarter of this year. Much of the lobbying effort was focused on disaster insurance and regulatory reform. The insurance organization has been pressuring legislators to pass laws that would make insurance more accessible to those in disaster prone areas. The money spent during the second quarter was not only spent to lobby the House and Senate, it also went toward lobbying efforts targeted at the Department of Treasury and Federal Reserve System. The association…
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