Friday, April 16, 2010

Insurance: "Iceland Volcano Eruption Could Mean Business and Catastrophe Claims "

UPDATE II: Iceland: "Volcano Insurance, Anyone?"
"Ash Cloud Over Europe May Cost Airlines $1 Billion" (AFR.DE; BAY.L; DAL)"
Original post:
Following up on yesterday's "You say Volcano, I say Eyjafjallajokull (Volcano could mean cooling, acid rain)".
From P&C National Underwriter:

Volcanic activity in southern Iceland has disrupted air transport networks across northwest Europe, but has not caused property damage or casualties in Iceland, according to reports.

Gordon Woo, lead catastrophist for Risk Management Solutions, said insurance implications from the Eyjafjöll volcano eruptions could include payouts from Iceland’s national natural catastrophe insurance fund—which covers volcanic eruptions and glacial floods—if there is damage.

Additionally, he said business interruption for the aviation industry could be triggered due to the temporary closure of airspace in the United Kingdom and Scandinavia as a precaution over the airborne ash plume.

Aviation and travel insurers will be hit by the cost of several days of flight cancellations, Mr. Woo noted.

Floods from the melting glaciers will likely cause river levels to rise and potentially cause damage, RMS said, citing Iceland’s Department of Civil Protection and Emergency Management....MORE

"Lead catastrophist", ya gotta love a title like that.

HT: The Rational Walk