Insurers Hit as Hurricane Costs Estimated at $30bn

[beetbox]

Insurers hit as Hurricane costs estimated at $30bn
By Peter John in London
Published: August 29 2005 10:50 | Last updated: August 29 2005 10:50

European insurance shares fell early on Monday as one US storm assessment group estimated that the cost to the industry of Hurricane Katrina could reach a record $30bn.


Allianz, Europe’s biggest insurer, and reinsurers such as Munich Re and Swiss Re all suffered declines. Reinsurers, which underwrite insurance companies’ liabilities, were among the hardest hit.

Eqecat, the company that provides products and services for managing natural and man-made risks, believes a direct hit on the New Orleans area could cost insurers as much as $30bn. That would be more than the combined cost of last year’s busier-than-average hurricane season when insurers paid a record $22.9bn for four Florida hurricanes.

http://news.ft.com/cms/s/ccd955f8-1867-11da-8fe9-00000e2511c8.html

[no_hypocrisy]

1. The effects of Katrina is going to be quite a clusterfuck.

[mtnester]

2. This is exactly why we dropped coverage with a MAJOR insurance company

and only do business with a company that only insures in Ohio.

We are paying 50% less on our insurance than when we were with Nationwide cause we do NOT have to pay for the foolish decisions by people who build their houses right in the danger zone over and over and over again. Beachside, cliffside...you name it, we ultimately have to pay through increased premiums.

No offense to New Orleans...we love New Orleans, we were just there again last year and are thankful for that (so worried about them now)..BUT, for gawds sake they have dodged many a bullet.

[Coventina]

3. That's not a very nice attitude.. New Orleans is largely black and poor.

Up to 80 percent of homes may be destroyed, and it's mostly not going to be the homes of the rich.

So much history is there. Over 400 years worth. And it may all be lost. My frickin' insurance premiums are the last thing on my mind right now.

[mtnester]

5. Did you even READ my post for gawds sake?

[Coventina]

9. Yes I did, if I mis-read then I apologize.

But it seemed to me that you were saying that the people of New Orleans are foolish to be living there.

[mtnester]

10. No, I was talking about major insurance companies

I specifically mentioned my love for NO, and not that this was specific to NO. My only comment about NO was they have dodged bullets before. I hope NO is standing tomorrow...

I was simply saying that major insurers pass along tragic losses to everyone, and then ALLOW or insure folks who are foolish enough to REBUILD on a CLIFF or coast line. (This would NOT be the poorest folk, poor folk are NOT building cliffside mansions on fire or fault or mudlside lines or on coastal property....uninsured folks would use FEMA and that is my tax dollar and that is what it should be used for, rightly so)

[Inland]

4. OMG, that's the cost of five months of Iraq occupation! nt

[TheCowsCameHome]

6. Pretty good. The storm hit 2 hours ago and already they know

how much the claims will be. What a bunch of crooks.

[demo dutch]

7. Biggest problem will be building supplies in the immediate future!

we can thank the Iraq mess for that as well.

[goforit]

8. Dick Cheney has more money to burn than God does...Ask him for $