Tsunami Insured Losses Est. $5B-$10B
NU Online News Service, Jan. 4, 11:25 a.m. EST?As the world continues to examine the cost of relief and rehabilitation for the deadly Indian Ocean tsunamis, a new insurance industry estimate puts total insured losses at less than $10 billion.[@@]
The industry estimate was provided by The International Underwriting Association of London. The group stated that according to current opinions of IUA member companies, total insured losses are expected to range between $5 billion and $10 billion.
The International Underwriting Association of London echoed other industry participants’ observations that most of those whose livelihoods have been destroyed were not covered by any insurance.
“The economic cost will also be significant, but it is unlikely that many of these losses will be insured,” the group stated.
Among the insured losses, the IUA also pointed out, many claims would be met by local Asian companies, because in recent years a number of countries in South East Asia have developed financial service industries, including insurance businesses.
Some liabilities will, however, have been reinsured through the London Market. The IUA said its members will be prepared to meet their obligations in this respect.