Missouri residents can expect to see higher rates for their homeowners insurance in the coming months thanks to the major disaster that struck the town of Joplin early last year. On May 22, 2011, a massive tornado rolled through Joplin, causing unprecedented damage throughout the town causing many businesses to shut down and leaving nearly a third of the town uninhabitable. The tornado cost the state millions of dollars in insured losses, and now insurers are looking to recovery some of that money. Several insurers have proposed rate hikes between…
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Investment vehicles help promote investor action in the insurance sector
This year’s string of devastating natural disasters has put insurers on edge. Earthquakes, tornados, floods and fires have drained capital levels throughout the insurance industry. In an effort to recover from such dramatic losses, many insurers have taken to ramping up their rates. Higher premium rates mean that companies will be able to recover their losses faster, but it also means they stand to make quite a bit of profit. This has not gone without notice, as investors begin flocking to the industry, seeing opportunity in the rampant calamity. “There…
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