World News Engine: Cost of earthquakes $US300bn

Cost of earthquakes $US300bn

Disaster-modelling company Risk Management Solutions estimated the earthquake and tsunami will lead to economic losses of $US200bn to $US300bn ($191.1bn to $298.7bn).

Analysts expect about 10 per cent to 20 per cent of the economic cost of the earthquake to be borne by private insurers and reinsurers, most of which have enough capital to withstand the losses. Still, with economic losses potentially exceeding $US200 billion, the event would still be one of the costliest disasters in history for the insurance industry.

Swiss Re said yesterday it expected claims costs of $US1.2bn from the earthquake and tsunami in Japan, but cautioned that its estimate is subject to a higher than usual degree of uncertainty and may need to be adjusted as the extent of the insured losses became clearer.The reinsurance company said the incident at the Fukushima nuclear power plant was unlikely to result in a significant direct loss for the non-life insurance industry.

Earthquake and tsunami damage for nuclear facilities in Japan is largely provided by the government.

American International Group last Friday estimated its property and casualty business would have to pay $US700 million in claims arising from the Japan earthquake and tsunami, excluding $US500m in catastrophe reserves that its Japanese operations had established earlier for earthquake damage to people's homes.

Munich Re, the world's largest reinsurance company by premiums, and Hannover Re both said yesterday that it was too early to provide an estimate. French reinsurer Scor SE has said its pre-tax losses will likely be less than 185 million euros ($US262.1 million).

World News Engine

Blog Archive

Popular Posts Today

Labels

Cost of earthquakes $US300bn

0 comments:

Labels

Facebook Badge