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…
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2011 disaster losses break records from previous years
This year was one that brought disasters to areas all around the globe, and these catastrophes came with record breaking bills that have left the figures from previous years behind. According to the data from Swiss Re AG, a reinsurance company, the quakes and tsunami in Japan, the earthquakes in New Zealand, the Thailand floods, and the large number of American tornadoes brought a global disaster loss total up to a staggering $350 billion. The tremendous amount of devastation brought production at factories to a grinding halt and cut off…
Read MoreU.K. auto insurance rates rise as large claims shrink
This year has shown a continuation of the increase in car insurance rates in the United Kingdom, as some motorists find themselves faced with premiums that are as much as 50 percent higher than they were in 2010. Equally, according to the U.K. Motor Market Review, which is performed annually by top reinsurance advisor (and part of global insurance broker, Willis Group Holdings) Willis Re, the number and frequency of large claims from serious injuries and deaths resulting from crashes in the country have fallen by a notable 10 percent…
Read MoreLloyd’s enters Florida’s reinsurance market on the heels of new law
Lloyd’s of London, one of the world’s leading insurance and reinsurance specialists, is entering Florida’s reinsurance market. The company joins several other reinsurance organizations flocking to the state to take advantage of a new law that reduces capital requirements for reinsurers. The law, first introduced in 2009 but only recently passed, is an attempt to attract more foreign reinsurance companies to do business in the state, thereby reinvigorating the somewhat stagnant market. Because of the law, Lloyd’s has been approved to do business in the state. According to the law,…
Read MoreAIR Worldwide Updates European Wind and Earthquake Catastrophe Models
MONTE CARLO, Sept. 12, 2011 – Catastrophe risk modeling firm AIR Worldwide (AIR) released updates to its Extratropical Cyclone and Earthquake Models for Europe. Both models were significantly expanded to include additional European countries and provide a consistent and comprehensive assessment of the extratropical cyclone and earthquake risk throughout Europe. “AIR Worldwide offers complete and robust extratropical cyclone and earthquake models for Europe,” said Dr. Jayanta Guin, senior vice president of research and modeling at AIR Worldwide. “With the expanded regions and enhancements to these models, insurers and reinsurers now…
Read MoreTaking a look at the reinsurance market pulse as we head into hurricane season
We are now on the cusp of hurricane season. Storm predictions have called for “above average” activity this year; just as we roll out of record setting tornado activity over the last two months. The cushion of excess capacity is gone or nearly gone for most insurers and reinsurers. One more natural disaster could be the tipping point that leads to the turn in the (insurance) pricing cycle. We know capacity is just a part of the many aspects to take into account when evaluating the reinsurance sector. However, the…
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