Friday, December 22, 2006

Insurance Company Bonus'

Wonder how the bonus' will be this year in the insurance world.
"After years of record losses, property insurers appear to be getting off lightly in 2006," Swiss Re said. "Catastrophe losses of only $15bn will allow them to replenish their risk capital, depleted by record payments for hurricane damage in 2005 and 2004."

2006 has produced the third-lowest loss for insurers in the past 20 years, after 1997 and 1988, Swiss Re said, mainly due to the quiet US hurricane season this year. It said that Europe had also been spared expensive catastrophes but warned that the year "is by no means over".

Last year Swiss Re said that natural and man-made catastrophes caused economic losses of about $225bn in 2005 when Hurricane Katrina swept through the US. Insured losses amounted to $80bn.

This always begs the question, do insurance companies ever have losses?

The article has some interesting tables on where and how much disaster losses occurred.

It also raises the question of how insurance coverage has changed in recent times. My father owns a small business and his insurance sky rocketed last year for a policy that had no increase in coverage. In fact the specific outline of situations not covered was longer than the policy or what is covered.

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