Natural Disasters Set Records in 2017

In our attempt to help businesses and people be the very best they can be, we strive to share useful information so proper planning can take place. I recently read a good article from “ProgramBusiness.com” that I believe all individuals that buy Property Insurance should be aware of.

Here are a few statistics as quoted in the article:

  • “Total global economic losses from natural and man-made disaster in 2017 were USD 337 billion, almost double the losses in 2016 and the second highest on record”
  • “Global insured losses from catastrophe events, meanwhile, were USD 144 billion, the highest-ever recorded in a single year”
  • “Major wildfires across the globe resulted in combined insurance losses of USD 14 billion, the highest ever”

So, with all that said, what are the main take-away points you should be aware of? I believe you need to know the following:

  1. Excessive losses will have an impact on “Reinsurance” rates and terms that virtually every insurance company must purchase. This will likely have a trickle down impact on every insurance buyer.
  2. Terms and Premiums for Property Insurance (especially property along the US coasts and in heavy tornado/hail storm states) will probably be tougher for the remainder of 2018 and 2019.
  3. To counter these concerns, it becomes even more important to focus on internal property risk management techniques and strategies and work with an insurance broker who understands how to create a “feeding frenzy” for your business – even in a tough marketplace.

Please call or email me for more details.  For the complete article, please visit ProgramBusiness.com.

Rob Gion, Jr. CIC, CRM
President
Gion Insurance Group