A.M. best special report: earthquake losses overdue.The U.S. property/casualty insurance industry is overdue OVERDUE. A bill, note, bond or other contract, for the payment of money at a particular day, when not paid upon the day, is overdue. 2. The indorsement of a note or bill overdue, is equivalent to drawing a new bill payable at sight. 2 Conn. 419; 18 Pick. for heavy losses from a massive earthquake earthquake, trembling or shaking movement of the earth's surface. Most earthquakes are minor tremors. Larger earthquakes usually begin with slight tremors but rapidly take the form of one or more violent shocks, and end in vibrations of gradually diminishing force , according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the A.M. Best Co. Special Report, 2006 Annual Earthquake Study: $100 Billion of Insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. Loss in 40 Seconds. Due to generally low take-up rates on earthquake insurance Earthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property. Most ordinary homeowners insurance policies do not cover earthquake damage. , a major earthquake would tend to do more damage to the economy than would a more fully insured catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). of equivalent insured loss.
Global Natural Catastrophe
Insured Property Losses
(1997 to 2005)
Earthquakes 2.5%
Floods 8.0%
Other * 8.8%
Storms 80.7%
* Other includes drought, frost, brush fires, hail, etc.
Note: Annual losses adjusted to 2006 dollars for weighting.
Sources: A.M. Best, Swiss Re.
Note: Table made from pie chart.
California Earthquake Policies as % of Total
Residential and Commercial Lines Policies
Earthquakes as % Earthquakes as % of
of Residential Commercial
1996 31.4%
1997 19.5%
1998 17.4%
1999 16.8%
2000 15.7%
2001 15.8%
2002 14.6%
2003 13.3%
2004 13.8% 11.5%
2005 11.9% 10.7%
Source: California Department of Insurance.
Commercial breakout prior to 2004 not available.
Note: Table made from bar graph.
Global Earthquakes--1970 to 2005
Insured Property Losses of $1 Billion and More
Ranked by Loss Restated into 2006 Dollars *
Rank Earthquake Year
1 Northridge Earthquake (United States) 1994
2 Prince William Sound (United States) and Tsunami 1964
3 Kobe Earthquake (Japan) 1995
4 Earthquake and Tsunami (Sumatra-Andaman Islands) 2004
5 Loma Prieta Earthquake (United States) 1989
6 Newcastle Earthquake (Australia) 1989
7 Michoacan (Mexico City) Earthquake (Mexico) 1985
8 Izmit Earthquake (Turkey) 1999
Earthquake Magnitude
Northridge Earthquake (United States) 6.7
Prince William Sound (United States) and Tsunami 9.2
Kobe Earthquake (Japan) 6.9
Earthquake and Tsunami (Sumatra-Andaman Islands) 9.1
Loma Prieta Earthquake (United States) 6.9
Newcastle Earthquake (Australia) 5.6
Michoacan (Mexico City) Earthquake (Mexico) 8.0
Izmit Earthquake (Turkey) 7.6
Insured
Losses
Earthquake $Billions
Northridge Earthquake (United States) 17.8
Prince William Sound (United States) and Tsunami 4.1
Kobe Earthquake (Japan) 3.5
Earthquake and Tsunami (Sumatra-Andaman Islands) 2.2
Loma Prieta Earthquake (United States) 1.7
Newcastle Earthquake (Australia) 1.2
Michoacan (Mexico City) Earthquake (Mexico) 1.1
Izmit Earthquake (Turkey) 1.0
* Inflation adjustment made using the Construction Cost Index (CCI)
(McGraw Hill).
Sources: A.M. Best Co., Swiss Re, ISO, U.S. Geological Survey.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion