Mother Nature wreaks havoc: 2011, the year of the black swan?

May 24, 2011OMAHA, Ne – Devastating tornadoes, floods, earthquakes overseas and a busier-than-usual hurricane season have U.S. insurance companies bracing for record losses in 2011. Insurers could suffer as much as $10 billion from weather-related losses in the United States in 2011, which is up from the average of $2 billion to $4 billion, according to EQECAT Inc, which provides disaster and risk models to insurance companies. On top of the potential U.S. losses, insurers are also reeling from disasters overseas, including large earthquakes across the Pacific Rim. And as if that was not enough, analysts now expect an above-average Atlantic hurricane season. “This is not a black swan year that is an absolute worst case, but it is significant and it is close to that,” said Jose Miranda, director of client advocacy at EQECAT Inc, which provides disaster and risk models to insurance companies. Globally — including the major earthquakes in New Zealand and Japan — U.S. and overseas insurers could post up to $55 billion in losses, EQECAT projects. Some insurers have already posted large losses due to the Japan and New Zealand quakes. Berkshire Hathaway Inc. lost $1.07 billion from the Japan earthquake and $412 million from the quake in New Zealand. During the annual meeting in Omaha, Nebraska April 30, CEO Warren Buffet said the company would likely post its first full-year loss in insurance underwriting in nine years. And insurance stocks have lagged the broader market because of investor worries about catastrophic losses. The S&P Insurance Index is flat since the beginning of the year, lagging the broader S&P 500 Index, which has risen 4.7 percent. Over a six-week period this spring, tornadoes ripped through Southeastern and Midwestern states flattening neighborhoods in large Southern cities such as Raleigh, North Carolina and Tuscaloosa, Alabama. So far, tornadoes have killed 365 people in the United States, a figure nearly six times higher than the three-year average of 64 deaths, according to the National Weather Service. Already, 1,151 tornadoes have occurred in the United States this year, nearing the 1,282 reported in all of 2010, but below the all-time high of 1,820 in 2004. –Claims Journal
This entry was posted in Catastrophic Insurance losses mount, Climate unraveling, Dark Ages, Earth Changes, Earth Watch, Extreme Weather Event, Signs of Magnetic Field weakening. Bookmark the permalink.

9 Responses to Mother Nature wreaks havoc: 2011, the year of the black swan?

  1. radiogirl says:

    So far this year beginning in the month of January….our home flooded due to a frozen pipe… complete redo of interior, 2 cars hail damage in shop now(hail still coming with rain but I’m driving rental)roof will be replaced also due to hail damage. This on the heels of my fathers passing in January.

    Insurance industry getting hit hard.


    • Kathy says:

      radiogirl, sorry for you losses. Before I read your post, I was thinking “what about the human toll?”. I agree, “poor insurance companies”. Their doing what they get paid to do. I’ve been paying my premiums, as I’m sure you have.

      God bless you and stay safe!


  2. Laura says:

    To those that are suffering, I am so terribly sorry! Stay strong, work together with those around you in your communities and come together in this dire time of need.

    To the insurance companies… I’m sorry, I have no sympathy. We have paid to these companies for years and years and years. Insurance rates going higher and higher with every passing year. This is why we pay them! Yet they often times let their hard working, honest paying customers down. Much like our government. It really does feel to so many, that insurance companies are one of the greatest “ponzi schemes” out there.

    I fear that what we are witnessing is only the beginning. Perhaps this is a lesson to humanity, that we need to COME TOGETHER and work in unity, within our very own humanity. It is the only way we are going to survive as a species, with further upcoming catastrophes.


  3. Anna says:

    I get everyone’s looses, but I do have to say that pic is the most Beautiful swan I have never seen a black one ever. Everyone hang in there , things happen for a reason! The real people that care will help each other out and all will be good. Peace and Love ! ❤


  4. radiogirl says:

    yep great posts on all fronts…people first ofcourse..Blessings


  5. Kim says:

    Agree so sad for everyone’s losses. Always praying for them. My heart breaks.

    Alvin I have to say thank you for posting such a sweet video of a beautiful swan and its adorable babies. You have put a smile on my face and lately it has been difficult for me to smile. At times I am overwhelmed with despair even though I pray and Christ strengthens me it is hard because all I want to do is curl up in the corner of my room and just cry out. Again thank you.

    God Bless.


  6. Maiden PEI says:

    What a beatiful video…a lovely bit of healing for me.

    Thanx for posting it, Alvin



  7. concerned mommy says:

    well duh, USA ins co’s should sue Tepco, then, when the meltdowns happen in the States (which they WILL) other ins co’s can sue American Nuclear Power companies. If these “PEOPLE”(nuclear imps) dont understand what the cost to human lives are, maybe they’ll understand $$ reducing their bottom line.


  8. David says:

    2011 has been plagued with floods, cyclones, earthquakes, a tsunami and now the threat of a nuclear meltdown. Join Dr Andrew Rochford as we explore a deeper meaning and ask is the worst yet to come? Worth a watch if you have the time.


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