Insurance company losses

What happens to your premiums?

Thursday, May 26, 2011 - 12:37pm

Devastating tornadoes, floods, and a busier than usual hurricane season have U.S. insurance companies bracing for record losses in 2011.

These record losses could mean higher premiums for you.

According to risk assessors... insurance agencies are set to lose as much as 10 billion dollars from weather-related losses in 2011.

That's up from an average of 2 to 4 billion dollars.

KFXK spoke with local insurance agents who say there's a cause and effect relationship between higher claims and higher premiums.

Insurers claim part of your payment is already allocated to disasters to your home or car.

Net losses for insurance companies can have a ripple effect in finance.

Financial analysts say insurance stocks have brought down the stock market because of investor worries about catastrophic losses like the one's we've seen recently in Missouri and Oklahoma... as well as the tornado that tore through East Texas.

Already more than 1,100 tornadoes have occurred in the U.S. this year.

And with the national weather service warning of more...

the increase in spring storms have insurers preparing for the worst.


 

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