Extreme acts of nature have been felt globally over the last 12-18 months.
• The February 2010 Chilean earthquake was ranked as the sixth largest ever to be recorded by a seismograph.
Moreover, the key to controlling losses is to be judicious in extending aggregates and in writing for specific kinds of risks, i.e. wind damages. The relative position of different underwriters will also be impacted by how aggressive or prudent their risk-management modeling has been—for example, working with a 250- to 300-year return plan benchmark, versus selecting a 100-year return for planning reinsurance purchase and aggregate management.
Indirect impact: The reinsurance market