Moody’s: Thailand Floods
‘Meaningfully Hit’ reinsurers’ 4Q results
After taking into account estimated Thailand-flood losses at Swiss Re and Mu- nich Re, Moody’s Investors Service says it expects the event to
“meaningfully hit” the reinsurance industry’s fourth-quarter results, but notes that
it should also add to the current momentum for price hardening.
Moody’s says in its Weekly Credit Outlook that it expects the largest global reinsurance players to report the highest
losses. “In addition to Swiss Re and Munich Re, these players include Hannover
Re, Lloyd’s of London, SCOR, Berkshire
Hathaway and Partner Re,” says Moody’s.
Last week, Munich Re said it expects
its share of losses from the flooding to
be around €500 million (more than $650
million at the current exchange rate) net
Swiss Re said it expects its share of
F THE INDUSTRIAL FLOODING LOSES ARE
ExPECTED TO BE HIGH, REINSURERS WILL “LIKELY
BEAR THE MAJORITY OF THIS LOSS THROUGH
THEIR PROTECTION OF THAI, JAPANESE, AND
losses from the event to be $600 million.
The floods are due to heavy rainfall
that began in July and peaked in October
and November. Moody’s says the floods
have submerged major industrial areas
containing factories belonging mostly
to Japanese companies, disrupting the
manufacture of electronic key compo-
nents. Thailand is also a major producer
of hard-disk drives for computers around
the world, Moody’s notes.
Thailand Floods p. 10 A
Fortunately, we have bookended the conference with former
NASA astronaut Mike Mullane. His perspective on life is entertaining and thought-provoking. How many people have spent 356 hours
in space where any small mistake could spell disaster?
Who should attend the conference? Why?
Claims adjusters are a primary target audience. Most workshops
are focused on what adjusters should do in response to certain cir-
cumstances, and what they can expect from certain decisions they
Appraisers and umpires should attend too. They have the unique
benefit of obtaining a certification that can distinguish them from
others in their field.
While we offer CE credits in several states for insurance claims
adjusters, contractors, engineers, CPAs, and mediators, attorneys
who attend also earn legal education credits in a very specialized
field of insurance law.
How many people are you expecting?
We expect to host 1,300 to 1,600 attendees.
What are the hottest topics in the windstorm insurance
industry right now?
Appraisal is a very hotly debated topic. Some insurance companies
are taking the clause out of their policies. Others, that have taken
the clause out, are putting it back. The methods of how to conduct
an appraisal, the laws of various states regarding appraisal, and
how and whether causation can be addressed by an appraisal pan-
el are topics in which many have expressed interest.
During the conference, the physics and science of how wind im-
pacts the component parts of roofs, windows, and doors of buildings
are going to be explained by experts routinely retained by insurers
and policyholder attorneys. They are going to discuss what claims
adjusters should look for in the field when examining buildings, and
what should be found in reports to prove whether any given hurri-
cane, tornado, or windstorm caused damage. Last spring’s tornados
offer a different type of analysis from what we have found in a typi-
cal hurricane claims scenario.
In addition, a number of new Florida statutes have been passed re-
garding sinkhole losses. We have added two classes that juxtapose
the handling of those sinkhole claims and the changes with statutes
with how windstorm claims are handled given case law and recent
statutes impacting those claims.