Italian Earthquake hits A$6 Billion
Back on the 21st May, I reported that Italy had been hit by an earthquake. http://www.allanmanning.com/?p=1115.
Photos started to come through (thanks Steve D) showing damage to other property other than ancient churches and it was clear that the insured losses would be significant. For example, Parmgiano Reggiano producers lost up to 10% of their cheese production.
It was advised by Aon Benfield that the insured losses arising from the earthquake will be in the vicinity of AUD 6 billion, based on the most recent figures. This will put more pressure on reinsurance costs moving forward.
The losses for any business are much more than just the physical damage to buildings, stock, machinery and plant, fixtures and fittings etc. It is also the interruption to the business revenue streams. That is why business interruption insurance is so very important, as is the length of the indemnity period.