The insurance industry is currently hoping for a late summer rally of its own- in multi-billion dollar, hurricane-related destruction. After suffering through three years without an epic success like Hurricane Katrina, insurers are getting a little anxious that it's mid-August and the death and destruction counter from tropical storms this year is barely registering.
"If there are no major storms, more capacity will become available and prices will start to come down," Shivan Subramaniam, chief executive of commercial property insurer FM Global, said in an interview...Subramaniam estimated that a storm must incur between $9 billion and $10 billion in insured losses to convince already strapped customers they need to pay more for coverage.
Just what the world needs now- mother nature giving AIG another bailout.
Thanks to a DB reader, a good example of what the insurance companies are crossing their fingers for follows after the jump.
Before Hurricane Ike:
One Year Later:
Hurricane season better late than never for insurers [Reuters]