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Insurance industry

Tsunami Devastation Hits Asia, Insurers and Travel Agents Prepare for Claims and Cancellations

Strategic Insights

— 1 min read

Holidaymakers are reconsidering trips to Asia due to the tsunami disaster, with travel experts predicting a significant increase in cancelled package holidays. This will be the first indication of the disaster's economic impact on the region. Top insurance executives, including QBE Insurance, are assessing their exposure to claims, while major financial services groups are evaluating damage to property and loss of life.

Key Takeaways:

  • The tsunami disaster is expected to significantly impact the local economy, with the volume of cancelled package holidays being the first indication of the economic impact.
  • Top insurance executives, including QBE Insurance, are assessing their exposure to claims across the region.
  • Major financial services groups, such as AXA, ANZ Bank, and Sanmar Assurance Company, have reported minimal to no losses in the devastated regions.
  • Analysts expect little impact on the earnings of big general insurers, such as Insurance Australia Group, QBE Insurance, and Promina Group, but the total cost of the disaster is likely to continue rising.
  • Reinsurance companies, such as Munich Re and Zurich Financial, are expected to bear most of the claims.
  • The disaster is a bad end to a tough year for reinsurance companies, who have already made record payouts due to storm losses in the US and Japan.

Statistics:

  • The final damage bill from the four big hurricanes in the US was about $73 billion.
  • The total insurance claims from the hurricanes were around $35 billion.
  • Hannover Re estimates the cost of the tsunami disaster to be below $A525 million.
  • QBE Insurance is the biggest underwriter of Lloyd's of London.
  • AXA has operations in Indonesia and Thailand.
  • ANZ Bank has joint ventures in Indonesia and India.
  • Sanmar Assurance Company has reported no losses at its headquarters in Chennai, India.
  • NAB will donate $100,000 and ANZ will donate $200,000 to the World Vision Asia Earthquake Appeal.

Sources:

  • "Insurers prepare for claims and cancellations as holidaymakers rebook" by Duncan Hughes (Exact source reference not available in the provided text)
  • Reuters (Caption:Analysts tip little impact on earnings for the big general insurers)
  • World Vision Asia Earthquake Appeal (NAB and ANZ donations)
  • Munich Re
  • Zurich Financial
  • Hannover Re

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