What’s new: In brief (August 25, 2004)

The crash of two Russian airliners which left 89 dead late Tuesday is under investigation, with some speculating the cause is terrorism, but Russian officials saying there is no evidence of terrorism at this point. The outcome of this investigation may impact insurance coverage for the two airlines involved. While Volga Aviaexpress has not released details on insurance coverage for its downed TU-134 airliner, Siberia airlines says its TU-154 airliner holds the civil liability insurance required by Russia’s air code, with the policy carried by Ingosstrakh insurance company.

More insurers are releasing Hurricane Charley loss figures, including Platinum Re at US$35 million, Chubb at US$40 million, Safeco at US$45 million and Max Re at US$6-$9 million. The Florida government has also announced a 60-day grace period for policyholders to pay premiums or renew policies in light of the disaster.

The Scandinavian insurance market posted strong results in 2003 which are expected to continue into 2004, prompting rating agency Standard & Poor’s to maintain its stable outlook on the market. Overall, the market posted a combined ration of 98% in 2003, with some companies improving their underwriting results by as much as 25%. The only monkey in the works for 2004 is fears of rising personal injury awards, which could temper premium gains made this year. Controlling expenses will be key going forward, S&P says.