Reinsurance

Despite its devastation, Japan’s earthquake will not have a global impact on insurance rates, but the cumulative effect of a series of catastrophes and changes in modeling will likely produce rate increases in some sectors, according to a report from Towers Watson.

The Tohoku earthquake in Japan was a seismological “black swan”—an event beyond the realm of regular expectations, according to catastrophe-risk modelers.

The reinsurance industry can financially withstand the losses from Japan’s Tohoku earthquake, but the compounding of losses from Australia and New Zealand is putting strain on reinsurers and having some price impact, according to a Guy Carpenter report.

The reinsurance industry can financially withstand the losses from Japan’s Tohoku earthquake, but the compounding of losses from Australia and New Zealand is putting strain on reinsurers and having some price impact, according to a Guy Carpenter report.

Hamilton, Bermuda-based insurer Ariel Reinsurance Co. says it expects first-quarter catastrophe events will cost the company between $35 million and $50 million, but it expects to report positive net income for the period.

Hamilton, Bermuda-based insurer Ariel Reinsurance Co. says it expects first-quarter catastrophe events will cost the company between $35 million and $50 million, but it expects to report positive net income for the period.