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Deepwater insured loss $4bn to $6bn: Towers Watson

02 August 2010

Deepwater Horizon will not be a market-turning event for the property/casualty insurance industry, according to Towers Watson. However, the insurance policies of all parties directly involved are likely to be exhausted and other corporations that were indirectly involved will be targeted.

Read more: deepwater horizon towers watson BP Anadarko Petroleum and Mitsui transocean

The Deepwater Horizon disaster will not be a market-turning event for the property/casualty insurance industry, according to global professional services company Towers Watson. However, the insurance policies of all parties directly involved are likely to be exhausted and other corporations that were indirectly involved will be targeted.

Towers Watson estimates that net commercially insured losses will be between $4bn and $6bn, a fraction of the total economic loss that is estimated to be $35bn. By comparison, losses from the September 11 terrorist attack were about $23bn, and losses from Hurricane Katrina were about $71bn. In a typical year, total catastrophe losses in the US total about $7bn.

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For more catastrophe reports, data and news, click through to the RMS/Reactions Catastrophe Centre.

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Catastrophe bond issuance was $4.3bn in 2011. How much new issuance will there be in 2012?

Less than $3bn
0%
$3bn-$4bn
44%
$4bn-$5bn
22%
$5bn-$6bn
11%
$6bn-$7bn
22%
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Quote

If last year was the year of the cat, then this year could be the year of the debt crisis.

Mike Van Slooten, head of international market analysis at Aon Benfield