Source: ?A.M. Best
Insurers? estimates of industry wide losses from the Thailand floods have increased 50% to USD 15 billion since A.M. Best?s last briefing on this event (Thai Flooding Brings Industrial, Business Interruption Claims), published Nov. 23, 2011. Such a loss would place the Thai floods in a tie for the fifth costliest insured loss event in the past 31 years.
Aon Benfield estimated the floods in Thailand have damaged or destroyed more than 4 million homes, businesses and manufacturing facilities. This has generated structural damage four times greater than what resulted from Japan?s earthquake and tsunami in March 2011, but only half of the total insured loss due to a low rate of insurance adoption.
It will take the industry significant time to reconcile the true impact of the floods because of a general lack of data on Thai exposures, the length and magnitude of the floods, and the complexity of business interruption and contingent business interruption (CBI) claims. As demonstrated by companies increasing fourth-quarter reserves for catastrophe events that occurred earlier in 2011, potential losses may creep upward throughout 2012. The Lloyd?s market has yet to release its net estimate of flood losses, which will include a material loss from Kiln Syndicate 1880. That syndicate?s loss currently is estimated at USD 700 million, and claims have been fully funded in cash by its sole capital provider and guarantor, Tokio Marine.
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Source: http://fulltextreports.com/2012/02/26/flood-losses-prompt-key-changes-in-thai-insurance-industry/
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