MMC says economic crisis has cut readiness for hurricanes

A panel of MMC experts from Marsh, Guy Carpenter and Oliver Wyman has said the economic crisis has affected the insurance industry’s ability to manage severe hurricanes.

1 June Florida property-catastrophe reinsurance renewal rate rises will be slightly higher than the 13% to 14 % at 1 April.

With the price of oil and natural gas dramatically lower, cash flows are severely restricted and insurance coverage for hurricane damage to the oil industry is limited compared to a year ago. That could translate into significantly longer repair periods, which could cut production volumes and domestic oil and natural gas supplies.

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