Natural catastrophes, insurers are blowing the whistle

In 2011, Australia and New Zealand have accounted for about one third of the natural catastrophe losses. These disasters have caused damages amounting to 22 billion USD for insurers. Insurance Australia Group (IAG) is expecting a higher figure for the next years and warns against tariff increases. With a highly exposed population to such risks, 80% of Australians living less than 50 kms off the coast, these increases may render insurance hardly accessible. Some insurers will even abstain from covering highly exposed areas. Global warming is the prime suspect behind this rising loss experience.