Tornadoes To Impact Bermuda Firms
A series of tornadoes and storms which recently tore through parts of the US Midwest and South causing between $1 billion and $2 billion in insured losses will take a toll on the 2012 bottom lines of Bermuda catastrophe re/insurers
According to American catastrophe modelling firm Eqecat: ”An unusually strong extra-tropical cyclone spawning a months-worth of tornadoes in two days has caused significant losses in the Midwest and southern United States. EQECAT estimates that the latest series of severe convective events — tornadoes, hail, and strong winds — has produced from $1 to $2 billion in insured losses.
“Over 150 tornadoes (preliminary count) touched down in two distinct systems between February 28 and March 3, with the majority occurring in Tennessee, Kentucky, Indiana, Illinois, and Alabama.”
Tornado activity for the year in North America is well above average with 272 tornadoes versus the seven-year [2005-2011] average of 123 through March 4. Tornadoes have been cited as the cause for 49 fatalities year-to-date.
Last year international reinsurers’ share of insured losses from US tornadoes was estimated to be about $2.5 billion — or roughly 17% of total insured losses, according to analysis by the Association of Bermuda Insurers & Reinsurers.
Earlier this year ABIR president Bradley Kading said that most of the losses from the April and May, 2011 tornadic outbreaks — estimated in June by Aon Benfield to total about $21.65 billion, with $15 billion of insured losses – would be borne by primary insurers.
Mr. Kading estimated European reinsurers would absorb slightly more than half the $2.5 billion in reinsurance claims, with Bermuda companies accounting for another 40 percent.
AP News Report On The Recent Spree Of US Tornado Activity
Since the BP oil spill more & more storms are starting in the caribbean sea & heading to the U.S. We need to get out of this market while we still can. BP now are building oil fields in the Louisiana flood areas & in the gulf which will make the chances ocean oil spills more common.
I thought people got insured in case an unexpected disaster happens? Sometimes I feel like the insurance companies expect to just collect money and never have to pay out compensation to any of their customers! Is that realistic?
Of course it’s a big financial hit to the company when a larger than ‘normal’ disaster occurs, but that is what disaster insurance is for! So what if you get a ten thousand dollar bonus instead of twenty!? Bonuses should be just as unexpected as disasters, in my opinion.
Insurance companies would rather not have to pay out compensation thats why some insurance companies charge a higher price for someone with cancer or diabetes. My insurance company is trying to push healthier living to its costumers not because they really care but because they rather keep their money. Sometimes I wonder if I just kept the money I pay to my insurance would I save more from healthy living then what I do now. Though there always is that what if fear factor that the insurance companies thrive on & since I’m not a soothsayer I buy into the fear.