Reinsurance

Aftermath images of the Japan earthquake and tsunami demonstrate why insurance companies are looking at billions in losses, with one early estimate placing the figure as high as $35 billion.

The insurance industry is just beginning to grasp the consequences following the massive earthquake and tsunami in Japan late last week, with one catastrophe modeler estimating insured property losses at $35 billion.

Although Bermuda insurers and reinsurers were hit with more than $3.5 billion in catastrophe losses from worldwide disasters in 2010, roughly $2.7 billion in favorable prior-year loss development helped cushion the blow, according to NU tallies.

Aftermath images of the Japan earthquake and tsunami demonstrate why insurance companies are looking at billions in losses, with one early estimate placing the figure as high as $35 billion.

While the types of captives formed and the coverages may vary, one point regulators agree on is that business is up and more captives are in the pipeline for 2011.

The industry should “stay tuned” as the revised catastrophe model from Risk Management Solutions rolls out, the CEO of RenaissanceRe told NU, describing the model changes and potential market impacts as meaningful.