Man-made catastrophes outpace natural disasters in 2001, says Swiss Re study
March 13, 2002 by Canadian UnderwriterIn 2001, man-made catastrophes cost insurers more than natural disasters, mainly due to the back of September 11 losses, says the latest sigma study released by Swiss Re. The study pegs losses for the terrorist attacks at US$19 billion for…
Coming Events (February 01, 2002)
February 1, 2002 by Canadian UnderwriterAnnouncements in Coming Events are run free of charge as a service to the industry. Items should be submitted by the first of the month prior to the month in which the announcement is to appear. Insurance Institute of Ontario…
Terrorism Exclusions Walking a Thin Line
January 1, 2002 Sean van Zyl, EditorWith the January 1st deadline for when the vast majority of reinsurance treaty renewals take effect having come and gone without any response from the federal government on providing an alternative financing source for terrorism risks, primary insurers have begun issuing policy exclusions on both commercial and personal lines of cover — the consequence being that large parts of both the small and large business sectors, as well as individuals, have now been left uninsured to potential terrorism losses. While discussions between insurers and the federal government continue into the new year, it seems clear that the government’s future involvement, if any, will be limited to “high risk target” exposures, and that the general terrorism exclusions implemented by insurers in Canada will stay in place. How will this affect the property and casualty insurance industry in Canada? CU approached company CEOs and several organizations impacted by the withdrawal of reinsurance terrorism cover to determine how they will deal with the problem.
Global catastrophes top US$115 billion, study reveals
December 21, 2001 by Canadian UnderwriterOn a worldwide scale, catastrophes both man-made and natural resulted in losses of more than US$115 billion, costing insurers more than US$32 billion, in 2001, says a study from Swiss Re. The US$115 billion figure is three times that of…
Financing Terrorism Risks a Backstop, Not Bailout
December 1, 2001 Stan Griffin, executive vice president of regional operations at the IBCIn the wake of the September 11 terrorist attacks in the U.S., which sparked concerns globally of a reinsurance withdrawal from covering such risks, the Insurance Bureau of Canada has presented a proposal to the federal government that would see the creation of a temporary reinsurance mechanism available to insurers.
Terrorism Risks the Exclusion Dilemma
December 1, 2001 Brian Reeve, partner at Cassels Brock & Blackwell LLPTerrorism exclusions in Canadian property policies, are they necessary? As the deadline for reinsurance renewals nears, many insurers are looking for alternative solutions to the vexing problem of providing – or not providing – coverage for terrorism related risks.
Sleeping Giant: Canada’s Wildfire Risk
December 1, 2001 Vikki SpencerIn 1991, fires raged through the hills of eastern San Francisco, killing 25 and leaving thousands homeless. This travesty cost insurers more than US$1.5 billion. Not since the 1906 San Francisco earthquake set that city ablaze, had the world seen…
40 Most Costly Insurance Losses — Selected, 1970-2000
December 1, 2001 by Canadian UnderwriterLocation Year Victims Insured Damage (US$ at 2000 prices) 1. Hurricane Andrew Florida 1992 38 19,649,000 2. Northridge earthquake California 1994 60 16,277,000 3. Typhoon Mireille Japan 1991 51 7,142,000 4. Winter storm Daria Europe 1990 95 6,053,000 5. Winter…
Reinsurance Strategies 2002: Bargain Days Over
November 1, 2001 Sean van Zyl, EditorPrior to the terrorist attacks of September 11, reinsurers operating in Canada were adamant that 2002 treaty renewals would have to reflect general rate adjustments in the order of 15% to 25%. Most companies were mindful, however, of the prevailing and excessive competition within the Canadian marketplace, and in this respect seemed more hopeful than resolved that the rate adjustments they hoped to seek for next year would be achieved. The post-September 11 reinsurance landscape has changed dramatically. Covers available at “less-than-cost” pricing have vanished to be replaced by a steely attitude to both the terms and pricing of coverage. Reinsurers partaking in CU’s annual “Reinsurance Strategy Outlook” offer little hope for cheap pricing as the global cost impact of the terrorist attacks begins to bite. The message is clear: “The bargain days are over”.
Conning report suggests terrorism exclusions on the way
October 18, 2001 by Canadian UnderwriterA new report from analysts Conning and Company says U.S. property and casualty insurers will begin pricing “terrorist attack risk” separate from other coverage in light of the September 11 terrorist attacks. The report also suggests that maximum probable loss…
Lloyd’s losses could top $10 billion, says rating agency
October 3, 2001 by Canadian UnderwriterRating agency Fitch’s is predicting Lloyd’s of London losses from the terrorist attacks on America could reach US$10 billion or more. This comes after Lloyd’s announced estimated gross losses of US$1.9 billion for the market – still representing the single…
The Risk of Terror: Cost on Life
October 1, 2001 by Canadian UnderwriterThe images of death and destruction that burned into our consciousness on September 11, 2001, will forever haunt us. Over time, the buildings, airplanes, and property damage can be replaced or repaired, however the horrific and sudden loss of life will always remain with us. The human suffering from this disaster is incalculable. Although life can never be replaced, life insurance can help prevent further financial trauma. Life insurers and life reinsurers are now called upon to make good on promises made to policyholders.