Monday 21 March 2011

Outlook of Insurance sector after Japanese quake

Outlook of insurance sector may change after damage of assets worth more than $ billions. Swiss Re is being considered biggest victim of this event. American giant AIG
also has to face big claims. But exact figure is not declared by companies. Earlier earthquake in New Zealand also created liabilities for Swiss Re. But is just an accident and does not happen regularly. Confidence in insurance sector can return with time.
Japan has v. big GDP. Loss of assets is not main problem. Main problem is decreasing confidence. Japanese economy was not in good situation even before this quake. Now it is time to watch what steps Government take to handle this situation.