Many of the largest homeowners insurance providers in the country, including Travelers, Allstate, and State Farm, will be increasing their rates this year following losses in 2011 that were far greater than had been predicted by the industry. The second biggest homeowners insurance company in the United States, Allstate, has already announced that it will be boosting its rates by 5.6 percent between now and September 30, 2012. They have also indicated that policyholders should expect other increases, as well. Travelers has also discussed the increases that will be experienced…
Read MoreTag: 2011 natural disasters
Natural disasters from 2011 cost private insurance companies over $32 billion
As a result of the insured losses from natural disasters in 2011, private sector insurance companies will have paid over $32 billion in claims to assist businesses and homeowners to rebuild after damages caused by those events. According to the Insurance Information Institute (I.I.I.), this figure breaks the records for all previous years in terms of federal disaster declarations. The I.I.I. president, economist Dr. Robert Hartwig, CPCU, the catastrophes that occurred in the United States in January through September resulted in 32.6 billion in losses that were directly insured. This…
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 MoreNAPCO study shows that the U.S. property insurance market is under stress
A new study from NAPCO LLC, a wholesale broker of commercial property insurance coverage, suggests that the national catastrophe property market is quickly moving away from the soft market conditions that have governed insurance prices for several years. While this is typically good news for some insurers, the study shows that a low demand for insurance coverage may restrict the pricing power of insurers. David Pagoumian, CEO of NAPCO, says that property insurers are under heavy pressure to make profits in the current climate and may face even greater pressures…
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