Swiss Re has projected claims costs of $1.2 billion net of retrocession and before taxes due to the disasters in Japan. The company emphasizes that a great deal of uncertainty remains due to the difficult situations that still exist in the hard hit areas of Japan. Read this article for more details.
Munich Re Plans to Introduce Offshore Drilling Insurance Policies
Munich Re has announced plans to introduce insurance products designed to address the large losses that can arise from major events such as the Deepwater Horizon disaster. The insurer hopes to introduce coverage levels of about $10 billion to $20 billion per drilling operation. In order to make such coverage viable, a large number of drilling operations will need to be insured. Read this article for more details.
Munich Re Warns About Price of Low Interest Rates
Last week, Munich Re announced strong investment returns but warned that low interest rates could impact results going forward. In an interesting interview with The Financial Times, Nikolaus von Bomhard, CEO of Munich Re, explains the challenges facing insurers due to easy monetary policies that have sent interest rates to record lows in many developed countries. Mr. von Bomhard expressed some support for a low rate policy intended to boost the economy but he sees broader implications, some of which are not widely discussed. Read this article for more details.