Disasters Down Under: Why Reinsurers are Heeding the Call of Catastrophe

From earthquakes to extensive floods and a cyclone, the recent sequence of disasters in Australia and New Zealand has left thousands of people reeling. Insurers and reinsurers were also rocked by extensive claims, but reports that companies now may shun South Pacific markets are greatly exaggerated, not least because the catastrophes raised public awareness of the need for insurance. With their sights on new business and greater profits, big reinsurers are actually moving down under. And, Michael Sherris, a professor of Actuarial Studies at the Australian School of Business, predicts it's just the beginning. More newcomers can be expected as the industry adjusts its models and finds ways to recapitalise.