Japan's earthquake will have an impact on US insurance

The tragedy in Japan is going to have a worldwide effect on insurance availability in the near future. Reinsurance companies that serve the world and the US will most likely have to raise rates to make up for the payments of claims that will be experienced in Japan. The insurance industry has been on the edge of profitability the last 6-7 years do to the soft market sparked by competition. With very little room, the reinsurance companies will have to raise rates. The estimated claims for the earthquake could top 50 billion or more. The impact will definitely be felt. Thank goodness for the insurance industry as it will help Japan rebuild. Until next time be careful out there and know your risks. K

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