Reinsurance market has robust capital to absorb quake and tsunami losses: RAA

The reinsurance industry is prepared to absorb Japan earthquake and tsunami losses, said the Reinsurance Association of America (RAA).
With a capital position that stood at $470 billion at the end of 2010 Q3, the global reinsurance industry once again stands ready to pay a significant share of the insured losses from the March 11 Japan earthquake and tsunami, a RAA release says.
“By way of example, 60% of the losses related to the events of Sept. 11, 2001, were absorbed by the global reinsurance industry; in 2005, 61% of Hurricanes Katrina, Rita and Wilma losses were ultimately borne by reinsurers; and in 2008, approximately one-third of insured losses from Hurricanes Ike and Gustav were reinsured,” the release says.