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…
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Insurers wary of disastrous year on the heels of the infamous 2011
A new year has dawned and as celebrations from the holidays die down, insurers turn a wary eye toward a potentially chaotic future. 2011 has gained infamy as one of the worst years in recent history in terms of natural disasters. While some insurance organizations claim the total cost of worldwide catastrophes hovers in the range of $100 billion, Munich Re, a global reinsurance and risk solutions firm, asserts that the real total of global disasters is at $310 billion. Risk modelers have yet to release their predictions regarding the…
Read MoreHigher insurance and reinsurance prices may be linked to new RMS catastrophe model
State Farm customers in northeastern Louisiana may soon be paying more for their homeowners insurance as the company looks to state regulators for approval of a rate increase of 19.5%. The insurer claims that higher rates are the result of recent fires, tornados and other natural disasters occurring in the state. Insurance Commissioner Jim Donelon says that he has never before experienced such a steep increase in insurance rates, especially in the northern part of the states that are not often subject to such rate increases. The rate at which…
Read MoreThai floods to impact worldwide insurance prices, says Aon
Insurance prices around the world are set to rise in the wake of the devastating floods in Thailand, according to Aon Benfield, a risk assessment firm. The Thai floods are yet another catastrophic event that has occurred in 2011. Paired with rampaging storms in the U.S. and a horrific earthquake and tsunami in Japan, the floods have done major financial damage to the worldwide insurance industry. Estimates regarding the damage done to properties from the flooding in Thailand hovers around $10 billion, but these estimates only factor in the damage…
Read MoreInsurers show tentative interest in New Zealand insurance market nearly a year after devastating earthquake
A devastating earthquake struck New Zealand early this year, causing widespread damage throughout the region of Canterbury. In the wake of the quake, insurance companies fled the nation, paying out policies and refusing to sell insurance in the region until recovery had been achieved. In the months following the disaster, the New Zealand government offered to purchase the properties that had been damaged, all of which were completely uninsurable. Recently, however, insurance agents and underwriters have been visiting Christchurch, the city most affected by the disaster, looking to assess the…
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