Hurricane Katrina will become the most expensive insurance lossin U.S. history, surpassing Hurricane Andrew and the terror attackof Sept. 11, 2001, and could cause the insolvency of some smallinsurers in its wake.
Fitch said it expects losses to be on the high end of estimatesand to surpass any insured loss the U.S. has yet experienced. Itsaid a loss of "this magnitude always has the potential to stressor even render insolvent some insurers." It said the smallestinsurers with concentration of risk face the greatest threat, whilelarge insurers should manage. Some, however, may facedowngrades.
"However, it is still too early to tell if this is the case and,if so, who is at risk of financial distress," Fitch said.
Continue Reading for Free
Register and gain access to:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
