In this issue of the Property Insurance News Issue 4, Fall 2009, we discuss issues affecting the Property Insurance market.
The topics discussed in this edition include:
Potential Flood Event in Washington's Green River Basin
On September 10, 2009, a state of emergency was declared in King County, Washington, as a result of announcements made by the U.S. Army Corp of Engineers (USACE) regarding the potential for flooding in the Green River Basin. Marsh offers suggestions and resources should the potential of a flood event occur within our company's vicinity.
The U.S. Property Market: Through the First Nine Months of 2009
The U.S. commercial property insurance market for the first nine months of 2009 was one in a state of transition. The Atlantic Hurricane Season, H1N1 Virus, and upcoming January 2010 Reinsurance Treaty Renewals attributed to an erractic and varied for nine months of 2009.
Last Minute Extension Saves the NFIP Through December
The National Flood Insurance Program (NFIP) was extended on Friday, October 30, 2009. This is the fourth short-term extension since September 2008 for the NFIP, as Congress debates whether or not to include coverage for windstorm damage.
Increased Need for Force Placed Insurance Coverage Challenges Commercial Property Insurance Marketplace
An increase in mortgage defaults by both residential and commercial borrowers has been a hot topic of trade journals and mainstream media in recent months. These defaults result in foreclosure, creating a need for mortgage lenders and servicers to protect their collateral from physical damage losses through the purchase of foreclosed property coverage. Forced placed coverage is discussed as an alternative in that the entity purchasing the coverage—the lender or mortgage servicer—does not have physical control of the property.
CAT Modeling: Is It More Than Just a Number?
Catastrophe (CAT) modeling has become commonplace in the property insurance placement process for portfolios that are exposed to catastrophic natural hazards. CAT models leverage an organization's position in the market and help to realize a better outcome for an organization's risk management program.