Earthquake
Damage Costs Rising
NU
Online News Service, March 2, 4:30 p.m.EST—Recent
damage estimates for the Washington state earthquake
that hit on Wednesday may be much higher than an
initial estimate of $1 billion, officials indicated.
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Aon
Snaps Up Life Actuarial Consulting Firm
NU Online News
Service, March 2, 4:58 p.m.--Aon
Corp., Chicago, says its consulting unit has acquired
Avon Consulting Group L.L.P., Avon, Conn., a full-service
life insurance actuarial consulting firm.
The value of the deal was not disclosed.
Aon says it made the deal to increase its ability
to handle tax accounting, financial analyses and
product development efforts involving life insurance
products and annuities.
Aon acquired a second actuarial firm, Actuarial
Sciences Associates Inc., Somerset, N.J., in October
2000. ASA handles life insurance and benefits consulting
and actuarial work.
Earthquake
Damage Costs Rising
By Mary Christine Convey
NU Online News
Service, March 2, 4:30 p.m.EST—Recent
damage estimates for the Washington state earthquake
that hit on Wednesday may be much higher than an
initial estimate of $1 billion, officials indicated.
An estimate from the Federal Emergency Management
Agency put the damage cost at $2 billion, with total
economic losses as high as $3.6 billion. That estimate
is far higher than a Swiss Re Insurance estimate
from yesterday which put total losses at $1 billion
and insured losses at perhaps $500 million.
Ron Harper, a public information representative
from the Washington Emergency Management Division
said that they don’t have an estimate other than
"elected officials making estimates."
He said Washington Governor Gary Locke estimates
damage to be more than $1 billion, while an U.S.
Senator expects damage costs to be at $2 billion.
Mr. Harper said they don’t know what the final cost
of the earthquake damage will be "until we get structural
engineers to take a look at how much it will cost
to rebuild."
He added the state of Washington currently has engineers,
emergency managers and local communities looking
at the damage to provide assessments.
Ed Rhone, the Seattle branch manager for GAB Robins,
an independent claims adjusting firm located in
Baltimore, said that "one of the things that is
delaying [the estimated loss figures] is the time
that risk managers are spending on getting their
businesses back up and running. Reporting the claims
to their insurance carriers hasn’t been a big priorities
on their minds. We’re still not getting all of the
damage reports in, especially from the Tacoma and
Olympia." He said the residual effects, from loss
of business or relocation, "can be many months as
we go through the adjustment process."
He added, "We do have 11 national executive GAs
that are traveling out to this area that are already
set up as national account adjusters with some of
the major corporations."
He said the damages are going to be "difficult to
ascertain because of the structural side of things,"
which will require onsite engineering inspections
"of almost every location a corporation may have."
"One of our adjusters was on-site yesterday," Mr.
Rhone noted, "with a homeowner that had earthquake
coverage with a home built on posts that had a wonderful
view of Pugent Sound." After adjusters looked at
the building’s now-sloping posts they determined
damage will exceed the policy limit of $250,000,"
he said.
The insured, he related, "was quite upset because
they cannot live in the house since it has been
red tagged."
Mr. Rhone mentioned that their concern right now
is that Seattle is having hard rain, which can contribute
to landslides.
E.W. Blanch Co., based in Dallas, has a Catalyst
Catastrophe Alert Team whose engineers are working
on-site in Seattle to predict estimates for insured
property losses.
Blanch Vice President Jim TeHennepe said engineers
current estimate is between $500 million to $950
million, and he is expecting to receive more detailed
information next week.
Gov. Locke’s communications office was unable to
answer any questions regarding damage estimates.
The office was closed due to quake damage to the
capitol building in Seattle. |
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