Spring 2006
NEWSLETTER to clients of Knox Insurance Brokers Ltd.
From Randy Bushey, A.I.I.C.,
General Manager
Spring 2006 |
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TOPIC: The New Enemy: Weather
Over the past 10 years, several topics have dominated the attention of underwriters in the global insurance industry: pollution, asbestos, products liability in the U.S., medical malpractice trends. Now there is a new enemy draining the global fund of insurance premiums into which we all pay: weather-related catastrophes.
In 2005, weather-related damage has been estimated at US$225. billion, and was responsible for 112,000 deaths.
In North America, the trend line is particularly worrying: Seven of the most expensive storms in U.S. history have occurred in the last sixteen months. When the insurance industry paid out US$27 billion for storms in 2004, it was the worst year on record, and thought by many to never be repeated. However, the 2005 hurricane season will exceed US$57 billion in claims, and it has been predicted that the U.S. and Caribbean should prepare for another unusually active hurricane season in 2006*.
The August 19th rainstorm through southern Ontario, was the 11th worst insured natural disaster in the world last year, totalling property damage claims of over $400 million.
Underwriters are struggling to understand and predict the frequency and severity of future "weather events". As your broker, we will work with financially stable insurers to ensure that your premiums are competitive and fair, while also providing a prompt and comprehensive response when, and if, you have a claim.
*Tropic Storm Risk Consortium - U.K. December 2005
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