Insured losses of Japan, Ecuador earthquakes could be $4 billion
The insured losses of the devastating earthquakes in Japan and Ecuador in the past week have been estimated at more than U$2 billion and could be double that amount.
Catastrophe modeling firm AIR Worldwide estimates that industry insured losses from the M7.8 earthquake that struck Ecuador’s central coast on April 16 will be between $325 million and $850 million. The firm estimates the industry insured losses to properties from the M7.0 earthquake that struck Kumamoto Prefecture on Japan’s Kyushu Island, also on April 16, will be between $1.7 billion and $2.9 billion.
The recent quakes have prompted the Insurance Information Institute to remind homeowners of the importance of coverage. “While we’re seeing an increase in earthquake coverage in the most vulnerable states, everyone—no matter where they live—should contact their insurance professional to make sure that they have the right type and amount of insurance,” said Janet Ruiz, California representative for the I.I.I.
China warns against buying Hong Kong insurance products
The Chinese insurance regulator says that residents of mainland China should not buy insurance products from Hong Kong companies as they are not protected by mainland laws. Reuters reports that the move is a further tightening of restrictions by Chinese authorities to discourage investors from moving money out of the mainland.
First insurance IPO in $50 billion market
India’s HDFC is about to launch the country’s first insurance IPO in its joint venture with UK insurance firm Standard Life. The public listing is seen as a potentially major step in the growing insurance market which is already worth U$50 billion.
India’s insurance industry was opened up to foreign investment in 2000 and the level of foreign ownership has since grown to 49 per cent from the previous 26 per cent limit. The country is the world’s 11th largest insurance market and is growing due to current low penetration.
