Surprise?

04Apr11

Every now and then a piece of insurance trivia surprises me. This week I found out that the global reinsurance cost of the Japanese earthquake and tsunami is less than the global reinsurance cost of the Christchurch, New Zealand earthquake.

Why….?

…Because everyone expected a devastating earthquake in Japan. Reinsurance costs were so high that most parties could not afford to cover it. They chose to ‘self-insure’ or use the domestic market.

The earthquake in Christchurch was more of a surprise to reinsurers.

 

Advertisements


No Responses Yet to “Surprise?”

  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: