11 Mar 2010

Insurers face huge Chile quake bill

10:31 pm on 11 March 2010

The world's second largest re-insurer, Swiss Re, estimates the earthquake in Chile may cost the global insurance industry as much as $US7 billion.

Swiss Re says its own losses from last month's 8.8-magnitude earthquake will be about $US500 million, the BBC reports.

Another reinsurance company, Germany's Munich Re, estimates it will have to pay out $US543 million.

Analysts say while the losses are large, they're probably not sufficient to reverse recent falls in the prices reinsurance companies charge insurance firms to cover natural disasters such as earthquakes or hurricanes.