Insurance traumas

Last Updated: Saturday 04 July 2015 | 02:50:09 AM

FINANCIAL planners in insurance companies across the world hold their breath as the world leaders squabble over new cuts in greenhouse gas emissions at the Berlin Climate Convention Summit. The phenomenon of global warming might seriously affect their future, says Richard Keeling of the Harvey Bowring Lloyd's Syndicate, London.

The spiraling costs of covering for floods, earthquakes, rainstorms and other natural disasters might soon prove to be a backbreaking burden, he warns. Figures released by Munich Re, the world's largest reinsurance company, in early March showed that largescale disaster compensations are 14 times higher than in the '60s. "if we are not prepared for extreme events... we could see major insolvencies," was the grim verdict given by Frank Nutter, president, Reinsurance Association of America.

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