Munich Re America Offers Reinsurance Product to Protect against Natural Catastrophe Event Frequency
Business Wire, Nov 17, 2009
Nat Cat Frequency Cover complements existing catastrophe covers
PRINCETON, N.J. — Munich Reinsurance America, Inc. offers a reinsurance product for
insurance companies impacted by rising insured losses from natural
catastrophes.
The Nat Cat Frequency Cover is designed to protect insurers against the
accumulation of losses resulting from frequent, local weather events,
including thunderstorm hazards such as tornadoes or hail, winter storm
hazards, and wildfire, or it can be customized for selected other perils.
Over the last 30 years, insured losses from these types of local events
have increased dramatically. For example, research from Munich Re’s
NatCatSERVICE indicates that losses from thunderstorms have more
than tripled over the last 30 years, with 2008 and 2009 having the
largest insured losses on record; winter storm losses have increased
over 50% over the last 30 years; and losses from wildfires have
significantly outpaced inflation and population growth over the last 40
years, with 2003 and 2007 being two of the most costly years on record.
A.M. Best reports that losses of $1 billion and higher from single
events are becoming more frequent, and approaching losses typically
incurred from hurricanes.
These increases are attributed, in part, to shifting socioeconomic
conditions, including population increases in exposed regions and growth
in the number and value of insured properties.
The difficulty that insurers confront with large accumulated losses from
local weather events is that traditional reinsurance catastrophe
covers, which are designed to protect against severe events such as
earthquakes and named storms, are not providing the necessary coverage
to protect against event massachusetts auto insurance quotes frequency.
Munich Re Americas Nat Cat Frequency Cover is intended to complement,
not replace, the excess of loss catastrophe covers that protect against
event severity
Nov 18, 2009
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