The series of natural catastrophes is likely to strain the market

The insurance business has sustained heavy losses in 2010 and 2011 following a series of natural catastrophes. For 2011, alone, insurers have disbursed 108 billion USD (225% more than 2010). Reinsurers, on their part, had to face a bill amounting to 242 billion USD. This toll is largely accounted for by the guarantee loss of profit. The main insurers believe that the market is, henceforth, ready to accept targeted and gradual tariff increases at least for the most exposed risks. This is especially so when sovereign debt crisis along with the declining interest rates are affecting life and non-life operations.