KANSAS CITY, Mo., May 2, 2011 /PRNewswire/ -- In a new report, Insurance broker Lockton cautions that aftershocks from earthquakes in Asia Pacific and new catastrophe models create an uncertain environment for property insurance buyers.
(Logo: http://photos.prnewswire.com/prnh/20090415/CG99351LOGO)
In the new commercial property insurance report in Lockton Market Update released today, Lockton's Jim Rubel says that recent events "are sending shock waves throughout the global property catastrophe market and could lead insurers to restrict capacity and possibly even increase rates."
Lockton Market Update also notes that commercial property insurers face a more daunting dilemma with the new RMS 11.0 U.S. Hurricane Model released in March.
"The result has been many insurers are facing a sharp increase in their prospective CAT wind and earthquake exposures," said Rubel. "This means that insurers will pay close attention to their aggregate exposures and insurance capacity may be constrained or rates may stiffen at a minimum."
The Lockton report says, "The huge first-quarter catastrophe losses, the specter of increased reinsurance costs, and the impact of the new RMS 11.0 U.S. Hurricane Model—are shocks and aftershocks that may move the property insurance market. The first aftershock will likely hit those accounts with CAT wind and earthquake exposures and/or losses."
The Market Update also highlights practical steps that clients can take to respond to mitigate potential increases in commercial property insurance costs. Lockton's Andrew Rasberry reports that compiling engineering reports, documenting property valuations, and increasing emergency preparedness help insureds improve their negotiating position and reduce property insurance costs. http://www.locktonmarketupdate.com/RealEstate.aspx
The insurance broker's Market Update includes snapshots of 25 commercial insurance and employee benefits markets with the latest trends facing risk managers, chief financial officers, human resource leaders, and other executives.
To obtain free copies of these reports please visit www.locktonmarketupdate.com
About Market Update
Editors, feature editors and reporters are invited to quote from these reports and articles to enhance their own reporting. Please contact Dean Davison or Chris Don for permission to reproduce an article in its entirety or to speak to a Lockton expert.
About Lockton
More than 3,800 professionals at Lockton provide more than 15,000 clients around the world with insurance, benefits, and risk management services, offering an uncommon level of client service. From its founding in 1966 in Kansas City, Missouri, USA, Lockton has grown to become the largest privately held insurance broker in the world and 9th largest overall. Business Insurance recognized Lockton as a "Best Place to Work in Insurance." You can learn more at www.lockton.com
SOURCE Lockton
Share this article