Fitch Ratings says in a newly-published report examining the insurance industry’s possible exposure to the 11 March earthquake in Japan that it does not expect significant negative rating action as a result of the event due to a number of loss mitigating factors. The report expands upon the comment issued by Fitch entitled “Japanese Earthquake Losses Manageable for Primary and Reinsurance Companies” dated 13 March 2011 at www.fitchratings.com.
The agency believes that losses can be absorbed by the insurance and reinsurance industries without any widespread solvency problems, or undue financial strain. Howev
Read more…
Natural disasters have the ability to affect many people, not only through the physical destruction they cause, but also through injury, homelessness and even death. The earthquake and tsunami in Japan last week remind us that Mother Nature can be extremely destructive.
Here we list the seven worst natural catastrophes of the 21st century. There have been many more natural disasters since the start of the millennium, but these seven were the most severe given their cost, the injuries inflicted and the lives they claimed.
Catastrophe statistics are from the Insurance Information Institute (III).
7.
Read more…
Insurance company share prices have fallen sharply this week as estimates of the cost of Japan’s earthquake and ensuing nuclear emergency have risen. Shares in the global “full-line” insurance sector were down nearly 6 per cent in the five days following the earthquake, while the global reinsurance sector fell more than 4 per cent.
Although much of the cost will be carried by the Japanese government and local Japanese insurers, reinsurers including Swiss Re and Munich Re, and even UK insurers – such as Aviva and Prudential – have seen their shares hit as concerned investors sold out of their holdings.
Sh
Read more…
Aviva has reported a 30% year-on-year rise in claims resulting from residential cannabis farming and is warning landlords to be extra vigilant.
According to the insurer, there were 758,700 cannabis plants seized by the police in 2009/10, a rise of 18% on a year earlier.
Eighty-three per cent of seizures were for 50 plants or fewer and Aviva settled 92 cannabis-farming claims, the highest number since the group began collecting data in 2007.
The insurer’s underwriting manager, property owners, Matthew Gordon, comments: “Almost all of the properties were residential and we often find that it is part of a larger operation or that the policyholder has had a couple of properties affected.”
He adds: “Cannabis farming comes with serious risks for landlords; properties can be completely ruined inside to make space for plants, water damage can occur and fire poses a risk due to interference with electrics or strong lighting left on for a long time.”
The cannabis farming tenant will often line walls, ceilings and doors with plastic or polythene, and windows will normally have blinds or curtains closed to obscure any activity.
T
Read more…
Even if you already have car insurance, it doesn’t hurt to shop around to make sure you’re getting the best deal. Just because you’ve been with an insurance company for a long time doesn’t always mean you’re paying the lowest car insurance rates possible. You could be stuck with an overpriced policy and not even know it. If you’re currently in the market for auto insurance, here are some things to consider as you choose your new policy:
Understand your current policy The first thing to do when choosing auto insurance is to understand the policy you presently have. Look at how
Read more…
Millions of men approaching retirement could be left thousands of pounds worse off if a European court rules on 1 March that insurance companies can no longer use gender to calculate annuity rates and insurance premiums.
Young women drivers will also be hit hard if “gender discrimination” is ruled illegal. An Association of British Insurers research paper claims some under-25s may face motor insurance increases of between 50% and 60% almost overnight – which could translate into an extra £500-£1,000 a year.
Many in the UK insurance industry believe it is likely the European court of justice (ECJ) will ban insurers from taking a person’s sex into account when setting premiums. Such a ru
Read more…