Report highlights underinsurance in China compared to North America
Heavy rainfall in China last month resulted in flooding which caused U$33 billion of economic losses however just 2 per cent of the losses were insured.
The figures have been revealed in the latest Global Catastrophe report from
Aon Benfield, which also highlights the $1.5 billion of economic losses in the US from connective storms and flooding in July. The proportion of these losses that were insured was 67 per cent.
The underinsurance of Chinese assets is set to become an increasingly large issue as severe weather events become more frequent.
Adam Podlaha, Global Head of Impact Forecasting, said: "While it was expected that Chinawould see above normal rainfall during the peak monsoon months with such a strong El Niño, the intensity and scope of what transpired from the associated floods were at a magnitude not seen in nearly two decades. The flood peril is one which is becoming better understood by catastrophe modelers, and the industry is better prepared than ever to help create awareness of the risks associated with such large events."
Canada drives profits at RSA
International insurance group RSA’s latest earnings report shows that the Canadian arm of the business is driving underwriting profits alongside the UK unit.
Global underwriting profit at the UK-based insurance group was up 72 per cent for the first half of 2016 compared to the same period of 2015 and operating profit rose 20 per cent to £312 million (equivalent of C$532.4 million at current exchange rates.)
Canada’s contribution to the global operating profit was the equivalent of C$117.75 million. The insurer’s core group combined ratio was 94.3 while the Canadian unit’s was 94.5 per cent, beating both the UK and Scandinavian units.
The firm reported that its cost-reduction programs were on course to deliver at least £350 million in gross savings and that technology and customer service improvements are progressing well.
Drugs won’t be main driver of increased 2017 premiums, this will
Although costs for prescription drugs are rising, that won’t be the main driver of increased insurance premiums in 2017 according to a new study.
Analysts at Avalere say that health plan costs in the US will be more heavily impacted by outpatient spending which will account for 29.9 per cent of 2017 rate increases. Prescription drugs represent 14.7 per cent of rate increases.
While the outpatient costs are increasing, Avalere’s experts found that inpatient costs are reducing to 15.4 per cent of 2017 rate increases having been 19.6 per cent of spending in 2015.
The research notes that there are variations in the proportions depending on individual plans and states.
