How do insurance provider get ready for large-scale natural catastrophes like Superstorm Sandy? They alleviate risk through policies they purchase from reinsurance business– those who insure the insurance companies. As an outcome, reinsurers have some of the best insight into the result of natural catastrophes on insurance coverage, and are on the front lines of driving changes in natural disaster policies.
According to Munich Re, one of the world’s leading reinsurance companies, 2013 produced $125 billion in losses from weather-related disasters throughout the world. As terrible as that sounds, that’s below the yearly average of $184 billion over the last 10 years, in part due to the fact that of the absence of destructive typhoons in the U.S. By contrast, in 2012 the U.S. alone had well over $100 billion in cumulative damages, led by Superstorm Sandy however also intensified by fires in the West in addition to tornadoes and dry spell in the Midwest and South.
A huge issue for reinsurers is that requirement …
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