Archive for the ‘world events’ Category

Florida Says Latest $25 million from BP Not Enough

June 11th, 2010 by Iris | Comments Off | Filed in insurance news, insurance specialists, world events

The state of Florida, the Insurance Journal reports, is unhappy with BP. Again. The troubled oil company brought $25 million more to Florida on Tuesday, but the reaction was not gratitude, but criticism.

Florida Governor Charlie Crist and three independently elected Cabinet members asked for more money from BP, and demanded it swiftly in order to help residents of their state recover business losses caused by the Gulf of Mexico oil spill which has been rapidly encroaching upon the Sunshine State’s coastline. The informed Bob Fryar, BP senior vice president, that time is of the essence, because thousands of local businesses are on the brink of failure.

Chief Financial Officer Alex Sink told Fryar, “I don’t think speed is in your vocabulary yet. People are just trying to survive.”

Governor Crist, who is seeking a U.S. Senate seat as an independent, asked BP for more of everything: booms and skimmers to clean up slicks and sheen, money for cleanup, money for advertising, and claims offices in every coastal county in his state. “We demand it,” he said. “You’re a company with enormous resources.”

The most recent $25 million infusion from BP was targeted toward Florida’s costs of responding to the spill, and brings the total monies the state has already received from the company to $75 million. Before Tuesday’s meeting, Florida had already requested another $125 million.

Fryar, a petroleum engineer with 25 years of tenure at the London-based BP responded, saying, “We’re trying to make sure people with legitimate claims will be paid quickly. BP will pay all legitimate claims.”
He also said that BP had paid 18,500 of the 38,000 claims received to date.

The spill from the Deepwater Horizon explosion nearly two months ago in the Gulf of Mexico has threatened the tourism, fishing and hospitality industries in Florida. Tar balls washing ashore in the extreme western Florida Panhandle are also causing tourists to be dubious about the state as a wise choice of vacation destination this year.

Both Sink and Crist urged Fryar to have BP officials visit businesses hurt by the expanding spill.

“It’s no fun watching grown men cry,” Sink said. “That’s what I’ve seen.”

Attorney General Bill McCollum, who, like Sink, is hoping to succeed Crist as Florida’s governor in November, had very few positive remarks about BP’s handling of the crisis. “I don’t think you’ve done enough,” McCollum chastised the oil company. “There’s got to be more that you can be doing.”

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Preliminary Loss Estimates Announced for Chilean Quake

March 11th, 2010 by Iris | Comments Off | Filed in earthquake insurance, world events

Bermuda-based Everest Re Group has announced its preliminary loss estimate for exposures relating to the earthquake in Chile and the recent European windstorm known as Xynthia. The total? Earthquake: $225 million, Xynthia: $25 million. Representatives of the company told the press that the “…currrent estimates for these events are based on underwriters’ preliminary analyses and judgments, client input and discussion, event modeling and profiling of exposed limits.”

The company spokesperson elaborated, explaining, “Current industry loss estimates for the magnitude 8.8 earthquake in Chile range between $4 billion and $10 billion while the range of industry losses for the European Windstorm Xynthia is $2 billion to $4 billion. The Company expects it will be several months before relative clarity emerges with respect to its ceding companies’ underlying losses from these two events and as new information emerges these estimates may need to be adjusted.”

Joseph V. Taranto, Chairman and CEO Of Everest also commented, telling the press in a statement released yesterday: “We are extending our full support to our ceding company clients as they deal with the devastation caused by these events. Ours is a business of risk and we have ample capacity to absorb these losses. As such we are prepared to handle these claims in an effective and efficient manner.”

Meanwhile, insurance carriers with most of their policyholders here in the United States continue to urge consumers, especially those in known active fault areas, to purchase earthquake insurance sooner rather than later.

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