The insurance market of Lloyd’s of London LOL.UL has reported that it experienced its second largest losses in 2011, following the absorption of record breaking claim costs resulting from the natural catastrophes that included the earthquake and tsunami in Japan, as well as the flooding in Thailand. This statement was made on March 28, as it compared its last year’s loss of £516 million with the profit that it made in 2010, of £2.2 billion. The reported loss included the combined financial performance of the eighty insurance syndicate competitors which…
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Reinsurance companies face tremendous losses
Last year, the reinsurance sector was battered down by huge losses resulting from natural disasters. The disasters that lead to the enormous insured losses included the earthquakes in New Zealand, the flooding in Thailand and Australia, and the tsunami following the earthquake in Japan. These were all top events discussed in the most recent survey results from the Reinsurance Association of America. Catastrophe losses considered, the combined ratios for most reinsurers within the group were reported to have fallen. According to the executive director covering property and casualty insurance at…
Read MoreCalifornia insurance regulators target GeoVera Insurance, imposing fines and requiring the company to make changes to underwriting
California insurance regulators have taken action against GeoVera Insurance Co., providers of residential earthquake insurance, this week. Regulators took notice of the company after having received a multitude of complaints from policyholders. According to these complaints, the insurer’s underwriting procedures are not as adequate as they are supposed to be. Regulators have investigated the matter and found that the insurer’s practices were indeed falling short of the state’s standards. GeoVera will be facing major changes as regulators look to make the company more compliant with state laws. The insurer will…
Read MoreUnderstanding Earthquake Risk in Japan Following the Tohoku-Oki Earthquake
BOSTON, Feb. 16, 2012 – Catastrophe modeling firm AIR Worldwide released a new report titled, “Understanding Earthquake Risk in Japan Following the Tohoku-Oki Earthquake of March 11, 2011.” The M9.0 Tohoku earthquake changed the seismic risk landscape of Japan. In response, AIR scientists have conducted a detailed analysis of whether and where the stresses relieved by the Tohoku earthquake have been transferred to neighboring faults. Although damage from this event is most closely associated with the massive tsunami-which in places reached a height of more than 30 meters and demolished…
Read MoreHaiti and Dominican Republic to enter into a time of seismic activity, according to U.S. Geological Survey
Though insurers around the world are holding out hope that 2012 will not be as disastrous as 2011, a new study from the U.S. Geological Survey suggests that that may not be the case. The agency has been investigating earthquakes in the isles of Hispaniola, home to Haiti and the Dominican Republic. In 2010, Haiti was rocked by a strong 7.0-magnitude quake that cost the lives of more than 300,000 people are decimated entire communities throughout the nation. Researchers say that this may not be the last big earthquake that…
Read MoreJapan at risk of more strong quakes in the next four years, say seismologists
Japan is still working to recover from a massive magnitude-9.0 earthquake that rocked the nation last year. The quake generated a tsunami that claimed 20,000 lives and spurred a nuclear crisis that continues to this day. While it will certainly not be the last quake Japan experiences in its lifetime, seismologists from the University of Tokyo say that the next quake will come sooner than expected. According to researchers, there is a 70% chance that the nation will be hit by a powerful quake of magnitude-7.0 or higher within four…
Read MoreOhio earthquakes linked to controversial fracking procedures, claim regulators
Ohio has experienced an outbreak of earthquakes in recent months. Many of these quakes are relatively small – the strongest registering 5.4. While earthquakes are not decidedly uncommon in the state, the frequency at which they are occurring has some state officials and insurance companies worried. They are concerned because the quakes may be linked to the controversial “fracking” operations that are based throughout Ohio. Fracking is the process of drilling into the earth in order to harvest oil that is stored in shale bedrock. Earlier this month, state officials…
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