LACK OF CONFIDENCE IN ABILITY TO RECOVER
A survey on behalf of the Chubb Group of Insurance Companies has found that 42 percent of Americans are not confident that U.S. companies would be able to recover from a disaster similar to the recent Japanese catastrophe. Nearly 30 percent of respondents believe their employers do not have a crisis contingency plan, and 10 percent don't know if their employers have one.
ZURICH TO SUFFER $295 MILLION HIT
Zurich Financial Services Group estimates aggregate claims of approximately $295 million for Zurich North America and Farmers Re due to the series of severe weather-related events in April and May, the company said. Severity and frequency are well above past industry experience and the estimate is net of reinsurance and before tax, and will be recorded in the half-year results, due to be released on August 11, the company also said.
REGULATORS EYE DELAY IN SOLVENCY II
Britain's insurance companies must prepare for new European Union capital rules due in January 2013, the country's top markets regulator said, even as the E.U. flagged a delay to some elements. The E.U.'s financial services commissioner, Michel Barnier, said in June he would stick to the 2013 date in principle but that there might be a soft phase-in of some elements.
COURT REJECTS GLOBAL WARMING SUIT
The U.S. Supreme Court June 20 rejected a global warming lawsuit against five big power companies, a decision seen as a victory for the utilities and the Obama administration and a defeat for environmentalists. The court overturned a U.S. appeals court ruling that the lawsuit, now involving six states, can proceed in an effort to force the coal-burning plants to cut emissions that contribute to climate change.
AVERAGE SIZE OF LIABILITY CLAIMS RISE
Nationwide, the severity of long-term liability claims increased from $125,000 in 2005 to $153,000 in 2010, according to Aon Risk Solutions' 2011 Long Term Care General Liability and Professional Liability Actuarial Analysis. In 2011, liability claims severity is projected to reach an average of $159,000. In addition, the average annual loss rate per bed, which has hovered around $1,400 for the past five years, is projected to be $1,430 in 2011, the study also found.
INDUSTRY RESERVES AT $22 BILLION
Overall industry redundancy is $22 billion versus $21.9 billion at year-end 2009, after the industry released $10.5 billion of reserves during 2010, a new study compiled by Aon Benfield Analytics shows. The $22 billion redundancy across all lines of business is split between personal lines $6.5 billion, commercial property $1.5 billion, commercial liability $9.9 billion, and workers' compensation $6.5 billion, offset by a deficiency in financial guaranty of $2.4 billion.
MICROINSURANCE FACILITY PAYS OUT
Swiss Re, a founding member of the Microinsurance Catastrophe Risk Organization (MiCRO), will pay out $1 million in connection with damage from heavy rainfall in Haiti, MiCRO has announced. June rains resulted in flooding, mudslides and death.
--Compiled by staff from company websites and news releases.
August 1, 2011
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