Carriers Warned To Buy More Catastrophe Coverage
London
Some primary insurers might not be buying enough reinsurance to protect themselves from the large catastrophes that can be expected to occur every 100 years and upwards, a Swiss Re executive has warned.
"From our studies, it doesnt appear as though the insurance industry as a whole buys adequate protection for the more severe events," said Andy Castaldi, head of catastrophe perils with Swiss Reinsurance Company in Armonk, N.Y.
"One of the things thats always been surprising to us is that theyre not adequately covering themselves for the big event, the nightmare event, that might happen every 300 years," said Mr. Castaldi. Many insurers might be protecting themselves instead for the more frequent event, which might happen once every 30-to-50 years, he added.
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