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FEATURE: Catastrophe insurers ready to get blown away
23 June 2010
Above-average hurricane activity is predicted this year. But is the industry ready for a big hit.
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Tropical Storm Risk
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Unlike the unusually placid year for catastrophe losses in 2009, the first six months of this year have been tumultuous. Several cat events have struck, including earthquakes in Haiti, Chile and Mexico, windstorm Xynthia in Europe, two large hail events in Australia, a flood in Eastern Europe and the continuing Deepwater Horizon oil rig disaster in the Gulf of Mexico.
The Atlantic hurricane season started in June and across the board the forecast is for above-average activity (see table). Unfortunately, forecasts made close to the start of the hurricane season typically have a reasonably high degree of credibility, according to Matthias Weber, global divisional head of property and speciality for Swiss Re.
So after being hit by the most expensive first quarter catastrophe losses on record, can the market withstand anymore big hits?
There may be trouble ahead
The 2010 season’s combination of a dissipating El Niño southern oscillation and...
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