The flooding that struck Australia’s Queensland some months back was expected to have severe ramifications on the insurance industry. Now, officials are reporting that rates for homeowners are going to be raised by as much as 30%. Queensland residents have been receiving renewal notices for their policies’ premiums will be increasing. Many of these policyholders own property that survived the flooding without any damage, leading them to question the rate increase. Insurers claim a myriad of reasons behind the rate increase. While the flooding is a prominent factor, they assert…
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Insurance giant reports unexpected fourth-quarter increase
Zurich Financial Services AG, the largest insurer in Switzerland, has reported that its fourth-quarter profit showed little change despite major catastrophes in Australia. Analysts estimated that the net income for the insurer would come in at $1.02 billion, but Zurich is reporting an income of $1.04 billion. Zurich is planning to save more than $500 million over the next three years by making cuts to its general insurance business. The Australian floods have taken a heavy toll on the insurer, raising the combined ratio, a key measure of profitability, to…
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