Tag: catastrophic events

Is Allstate Insurance Ready to Re-enter California with Huge Losses

Loreen
allstate insurance california

Allstate Insurance Reports $491 Million in Losses from Catastrophic Events Allstate Insurance disclosed that $491 million of its recent losses were due to 11 distinct catastrophic events, with roughly 80% coming from four major wind, hail, or tornado occurrences. The remainder of the losses included claims reserve re-estimates for ongoing catastrophes. This revelation highlights the extensive challenges faced by the insurance sector amid an era of increasingly severe and frequent natural calamities. AM Best noted that Aon pointed out potential billions in losses insurers could have endured due to severe…

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Florida’s home insurance market could suffer deeply if this happens in 2024

G. Turner
Hurricane season Ahead 2024 - Florida

If the hurricane season this year is an active one for the state, policyholders will pay the price Florida’s home insurance market has already been in crisis mode for the last few years, worsening with each passing hurricane season.  If this year is another active one, it could be “detrimental” to the market in the state. Unfortunately, predictions aren’t good Though predictions are far from fact, the current predictive models are indicating that there will be a number of storms during this hurricane season.  This is leading to rising concerns…

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Florida Leaders Champion Bill to Slash Homeowner Insurance Costs by 25%

Live Insurance News
florida homeowner insurance

Amid escalating homeowner insurance rates, a glimmer of hope emerges from South Florida as two political figures spearhead a legislative initiative aimed at significantly reducing these financial burdens on homeowners. The proposed congressional bill sets its sights on a 25% cut in property insurance costs nationwide, promising particularly dramatic relief for Floridian home and condo owners. The legislation, coined the Natural Disaster Reinsurance Plan, is championed by U.S. Rep. Jared Moskowitz, a Democrat from Coral Springs, and Steve Geller, a former Florida legislator and current Broward County commissioner. It boldly…

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American insurance industry feeling the pinch of weak investments and catastrophes

Julie Campbell

A new report released by A.M. Best Co. Inc., has stated that the unprecedented number of natural disasters, poor returns from investments, and an economy that continued to struggle in 2011, has made it exceptionally difficult for the American property and casualty insurance industry’s commercial insurance and reinsurance sectors to grow and has caused notable hurt to their operating performances. It’s estimated by the rating agency, based in Oldwick, New Jersey, that last year’s underwriting losses from underwriters in the commercial property and casualty sector were approximately $15.2 billion. This…

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Aon Benfield report shows property insurance rates do not account for risk in some areas

Aon Benfield, a global reinsurance intermediary for the Aon Corporation, has released a new report concerning the state of home insurance rates in the U.S. The report shows that potential profit in the home insurance market has dropped from 6.9% in 2010 to 4.8% this year. The report suggests that the drop may be due to property insurer’s not pricing homeowner’s insurance in accordance with risk. This is especially prevalent along coastal regions where the risk for catastrophic damage is highest. Aon Benfield’s report shows that property insurers have shown…

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Cat bonds still steady even with major disasters

Live Insurance News

After the devastation in Japan two months ago, investors were keeping a watchful eye on the stock and bond market. It appears though, that the catastrophe bond (CAT bonds) division has been holding strong. Analysts and brokers have commented that no drastic price decreases or large spreads have occurred to cause them to be worried. The recent earthquake and tsunami in Japan were what investors are calling the biggest adversity to happen since the financial woes of the Lehman Brothers filing for bankruptcy. The catastrophe bond sector is still strong…

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Experts claim catastrophe risk modeling needs to change

The property and casualty insurance business isn’t what it used to be. Traditional methods of deciding risk management worked well in its time. According to the managing director of the Wharton Risk Management and Decision Process Center (WRMDPC) in Pennsylvania, the time has come where changing the way the industry calculates risk is essential to its survival. In the property and casualty sector, the traditional notion was that catastrophic events only occurred about every 25 years or so. It also counted on the fact that the risks were, for the…

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