Insurance effect Japan earthquake tsunami‎

Insurance effect Japan earthquake tsunami‎ : The earthquake and tsunami that hit Japan and the Pacific on Friday could cost the insurance industry about $10 billion, according to James Shuck, an analyst with Jefferies International Ltd. in London. That’s far smaller than the $50 billion analysts estimate a giant, once-in-250 years earthquake would cause. The number is smaller because the earthquake occurred in an area of relatively low population, and because many Japanese do not have earthquake insurance, he said.

Insurance claims are likely to be for property rather than life, he said. Only about 10% of Japanese homes are covered under earthquake insurance, and that coverage is only for part of the property value. The 1995 Kobe earthquake, for instance, incurred $100 billion of economic losses, but only $3 billion of insurance losses.

Japan earthquake causes fall in insurance shares
Oil prices were also down, as markets predicted lower demand from Japan, the world's third largest oil importer. US light, sweet crude fell by as much as $2.60 to $99.01 - the first time it had dipped below $100 a barrel in a week. In London, Brent crude fell by as much as $3 to $112.25. Prices were also lower because there had been little unrest in major oil producer Saudi Arabia on what had been called its day of rage. Read More...

Odd nature of Japan quake complicates insurance
There are about $24 billion in insured properties in the three-kilometer (1.8 mile) band closest to the coast in the four most affected prefectures, Jayanta Guin of Air Worldwide, a disaster-modeling firm, said in an interview. In the four prefectures most affected by the quake's shaking, there is some $300 billion in insured property. Read More...

Insurers Assess Japanese Quake
As the world’s third-largest economy and fourth-largest insurance market, many insurers have a stake in Japan with direct non-life premium income amounting to $104.9 billion in the year ended March 31, 2009. This perceived exposure was evident as the share prices of major reinsurers such as Swiss Re and Munich Re AG dipped in the stock market. A spokesperson for Swiss Re told Insurance Networking News that it’s still too early to make any statement about Swiss Re's exposure with regard to the Japan quake. Read More... For the latest updates PRESS CTR + D or visit Stock Market news Today

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