WGA InsureBlog

Reports from researchers at Arizona State and UC Irvine who have investigated earthquakes along the San Andreas fault over the past 700 years suggest that Southern California is overdue for a major shock.

These researchers, as reported by the Insurance Journal, outlined that major quakes take place along the Carrizo Plain which stretches 100 miles northwest of Los Angeles every 45 to 144 years. But, it has been since 1857 that the last major quake ranging from 6.5 to 7.9 on the Richter scale took place at Fort Tejon. The research is contrary to previous studies that suggested the frequency of such large earthquakes to be much lower.

If these academics are correct, they are being mostly ignored by the insurance industry. Availability and cost of Earthquake Insurance continues to improve for most buyers. Capacity is up by about 25% Read more…

Medical liability insurance premiums have eased nationwide for the fourth consecutive year, according to the annual Medical Liability Monitor survey. 58% of premiums had no change, up from 50% in 2008, another 36% of premiums fell, down from 43% last year. This is a continuation of the positive trend that we have seen over the past few years. There is still enough capacity in the market to foster price competition. For the coming year, we do not see this changing dramatically. While these trends are encouraging Read more…

Just back from a visit with our London insurers, we thought we’d provide you with a report on the state of the commercial aviation market and what to expect in 2010…

The calendar year 2009 has certainly not been a winner for aviation insurance underwriters, since they expect losses of approximately $2 billion USD and estimate the premiums generated will only total approximately $1.5 billion. The result has been an increase in renewal rates in the range of 20% to 30% for insured/airlines, or more in some cases. Read more…