A new report from the Massachusetts Institute of Technology (MIT) and Princeton University claims that so called “100-year Storms” could happen as frequently as every 3 to 20 years. 100-year storms are natural disasters of massive strength that leave a great deal of destruction in their wake. Risk modeling firms were the first to popularize these terms to express the potential risks that insurance organizations had to prepare to mitigate. Insurers use the risk assessments provided by modeling firms to price coverage, but this new report could change everything. Researchers…
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Report: Global economy able to withstand only one week of disruption caused by major catastrophic event
A new report from Chatham House, a policy institute for international affairs based in the UK, paints a very dire picture for the future of the global insurance industry. The past two years have been incredibly difficult in terms of insurance. Two record-breaking years for natural disasters have left the industry rattled and somewhat disoriented. The impact of these disasters has taken a toll on the global economy as well, damaging what was already a fragile structure. According to the report, the global economy can only withstand one week of…
Read MoreClimate 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 MoreNew Towers Watson study warns that insurance prices could be rising amidst a flat market.
A new study from Towers Watson, a worldwide professional services firm, has found that prices for commercials insurance have remained the same for the ninth successive quarter. Overall, prices for commercial property and management liability lines have decreased over the past two years. Workers compensation, however, saw a steep increase in the first quarter of this year. The study also finds that prices for other commercial lines of insurance have been steadily increasing. The director of Towers Watson’s Property & Casualty practice, Bruce Fell, notes that the increases in workers…
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