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May 17
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The Nature Of The Insurance IndustryMarketing Comments Off
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The very nature of the insurance industry is that it is always exposed to risks and vagaries of all nature says www.findapolicy.net. Being in the business of protecting businesses and people from unforeseen negativities of life and heir implications, the insurance industry has always been subject to a whole lot of ups and downs in its outlook.
The latest one among the factors having a significant impact on the insurance industry is the oil spill in the Gulf of Mexico, caused by a leak in a BP well. This unexpected leak may well cost the insurance industry a hefty bill to the tune of as much as $1.5 billion.
Transatlantic is the reinsurer that is divested by AIG, whose costs from the spill could be less than $15 million, while PartnerRe Ltd., the reinsurer, faces claims of up to $70 million. But such is the nature of the business that insurance companies would always have to be on their heels to face the unexpected.