According to Moody’s Investors Service, the insurance losses from the capsized Costa Concordia cruise ship from Carnival Corp off the Italian coast could break the $1 billion mark once all of the injuries and environmental damage are included in the tally. James Eck, the senior credit officer at Moody’s published a note that stated that the sunken ship “marks the first major insured loss of 2012 and will result in a drag on first-quarter 2012 earnings for affected firms.” Though the ship’s damage, itself will cost an estimated $500 million,…
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Climate change becoming a major focus for the global insurance industry, according to Munich Re
Last year has garnered major notoriety for the number and severity of natural disasters it played host to. 2011 has become widely recognized in the insurance industry as the costliest year in recent history in regards to natural disasters. While estimates varying regarding the total cost of disasters, Munich Re, a reinsurance and risk modeling organization, claims that 2011 generated more than $380 billion in worldwide insured losses, only a third of which was paid by insurance companies. The disasters have caused the global insurance industry to raise prices, but…
Read MoreInsurance claims hit record highs in 2011 due to natural disasters
According to Munich Re, earthquakes and other natural disasters in 2011 led to record losses in the insurance industry, which are estimated to have reached $105 billion. The world’s largest reinsurer said that the earthquakes in Japan, and the tsunami that followed, contributed to those totals by adding nearly 16,000 deaths and estimated $35 to $40 billion in damages to the final figures. Munich Re added that the February quake in Christchurch, New Zealand, alone was responsible for another $13 billion in insured damages. Together those two earthquakes caused almost…
Read MoreThailand floods could cost the global insurance industry $10 billion
Devastating floods in Thailand may have a global impact, according to insurers. Thailand is a critical point in the global supply chain, says Gary Lynch, head of supply chain risk at Marsh Risk Consulting. Widespread flooding has closed more than 14,000 businesses, including distribution centers for Sony, Canon and Nissan. The disruption in the supply chain could have far reaching consequences in the U.S., the UK and throughout Europe. Lloyd’s of London is now petitioning Thailand insurance and risk firms to assess the risk exposure they see in the nation.…
Read MoreU.S. appeals court to rule on a law concerning insurance payments for the heirs of the Armenian genocide
The 9th U.S. Circuit Court of Appeals in California has taken a controversial stance on the matter of the Armenian genocide in Turkey which may conflict with U.S. foreign policy. The issue concerns a state law which declares that heirs of those killed by the Turkish Ottoman Empire are due life insurance payments from three of Germany’s largest insurance organizations. The court first levied a tentative ruling on the matter in 2009, where judges ruled in favor of the German insurers. Now, however, the judges have ruled to rehear the…
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