Reinsurers are underestimating climate change exposure risk
Ratings agency Standard and Poor’s says that reinsurers are underestimating their risks of exposure to massive losses from climate change by up to 50 per cent. The claim is based on the firm’s analysis of climate change disaster losses over the past decade, the biggest being those in 2005 and 2011. S&P believes that many reinsurers are looking at climate change as a problem in the future rather than correctly assessing its impact now. This, they say could affect reinsurer’s credit ratings and their capital adequacy.
Canada counts the cost of storms
A major storm that brought heavy rain, wind and hail to southern Alberta on August 7th and 8th caused an estimated CAN$450 million in insured damage according to Property Claim Services. Bill Adams of the Insurance Bureau of Canada says: “While the frequency and severity of weather events have been rising across the country, Alberta has been hardest hit. What’s more is that we are not out of the woods yet, Alberta hail season traditionally runs through the end of September.” This recent storm brings insurance payments from natural catastrophes to CAN$4 billion in Alberta in the last three years.
Marsh launches new cyber threat policy
A new cyber threat policy aimed at large businesses has been launched by Marsh. In the wake of some big name victims of cyber attacks including retailers, banks and even NATO, the new policy reflects the growing interest in this area of cover. Called Cyber-CAT, the policy offers limits of more than $300 million in coverage above a minimum $100 million self-insured retention. In addition to high capacity, Cyber-CAT provides coverage over and above what standard cyber insurance policies offer including physical property damage resulting from a system failure.
Life Insurance Awareness Month
The non-profit Life Happens is once again run its life insurance awareness campaign to highlight the benefits to the many millions of people who are not covered. Surprisingly it’s the youngest Americans, the under 25’s, who are most concerned about leaving dependents in financial difficulty if they were to die prematurely. A recent report shows that more than two thirds of people say that the cost is the main reason they do not buy life cover, but it also shows that 80 per cent overestimate how much it costs. With around a third of households believed to have no life cover at all, this month would seem a great time to take advantage of the awareness the campaign brings even if you are not an affiliate of one of the supporting member companies.
