FM Global boss Ruud Bosman says insurer have capital
Ruud Bosman, vice chairman of FM Global says insurers have enough capital to cope with a potentially strong hurricane season, Reuters reports.
"The global property insurance industry is well capitalised at the moment following strong underwriting results from a successful 2009 for insurers, and recovering financial markets," he said. The industry would be able to deal with a busy hurricane season, or any significantly sized storms, he said.
"If you compare the industry today with it 15-20 years ago, we have much more knowledge about the impact of large events -- the notifications of an upcoming event are better and the impact of an event can be minimised through structural and engineering work," he said.
Price changes
Property pricing has flattened since 2008 and Bosman said he expected it to remain the same through 2010. "Prices have moved down by around 5% in property lines," he said - adding that only a major catastrophe of $35bn or more would affect the market.
Prices for property coverage increased by as much as 20% after Hurricanes Ike and Gustav left insurers with huge claims in 2008.
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