Premiums on the up as hurricane buffets the Americas
US insurers continue to feel the pinch from natural disasters, with Hurricane Dolly striking coastal areas of Texas and Mexico last week.
The Category 2 hurricane hit South Padre Island last Wednesday bringing winds of 160kmh and 30cm of rain within a few hours.
US media reports estimate the damage is not expected to exceed $US1 billion ($1.05 billion).
On the same day, giant US property insurer State Farm announced an increase in homeowners’ insurance rates by 12-18% in the windstorm-prone Alabama counties of Mobile and Baldwin. The insurer also plans to drop wind cover from about 700 insurance policies.
The plan was approved by the Alabama Department of Insurance.
The announcement comes amid an increase in US natural disasters for 2008 after Americans enjoyed a quiet catastrophe period over the previous two years.
Allstate, another of the largest US personal lines insurers, has recorded the highest level of second-quarter catastrophe losses in its 77-year history. Losses surged 60% to $US698 million ($727 million) for the quarter, sparked by unusually high tornado activity, wind and hailstorms.
The Category 2 hurricane hit South Padre Island last Wednesday bringing winds of 160kmh and 30cm of rain within a few hours.
US media reports estimate the damage is not expected to exceed $US1 billion ($1.05 billion).
On the same day, giant US property insurer State Farm announced an increase in homeowners’ insurance rates by 12-18% in the windstorm-prone Alabama counties of Mobile and Baldwin. The insurer also plans to drop wind cover from about 700 insurance policies.
The plan was approved by the Alabama Department of Insurance.
The announcement comes amid an increase in US natural disasters for 2008 after Americans enjoyed a quiet catastrophe period over the previous two years.
Allstate, another of the largest US personal lines insurers, has recorded the highest level of second-quarter catastrophe losses in its 77-year history. Losses surged 60% to $US698 million ($727 million) for the quarter, sparked by unusually high tornado activity, wind and hailstorms.