Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 25th of April 2018
December 22, 2010

Earthquakes account for highest insured losses in 2010

by Gill Montia

Story link: Earthquakes account for highest insured losses in 2010

The earthquakes that devastated parts of Chile and New Zealand were the largest source of losses to the re/insurance industry in 2010, costing $8 billion and $4 billion respectively, according to a new report by Guy Carpenter.

Also this year, of the eight catastrophes that individually caused insured losses of more than $1 billion, five were related to severe weather and storms in the US, Australia and Europe.

The only man-made event to incur losses in excess of $1 billion in 2010 was the Deepwater Horizon oil rig explosion in the Gulf of Mexico, with the expectation that BP and its captive will cover most of the expenses, capping insured losses at approximately $3.5 billion.

Despite one of the most active Atlantic hurricane seasons on record, no hurricane made US landfall and insured losses in the US generally matched those of 2009, adding up to $11.2 billion in the first nine months of 2010, according to Guy Carpenter’s reckoning.

On the other hand, floods accounted for significant insured losses of $955 million in France and Central and Eastern Europe.

The firm’s head of global business intelligence, David Flandro, comments: “Large losses in the first half of the year, coupled with low interest rates and depressed valuations, created a challenging environment for carriers in 2010.”

He adds: “Moreover, the active nature of this year’s hurricane season reinforces the fact that catastrophe risk remains elevated as the reinsurance sector prepares for 2011 renewals.”

 

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