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Insured losses in Japan keep climbing and are now nearing the -- estimated 35 billion dollar mark.
With four of the five costliest earthquakes and tsunamis in the past thirty years occurring within the past thirteen months.
The insurance industry could be in three wild ride was -- joins us right now with the story out.
And -- -- -- Moody's Investors Service and also Fitch are weighing in as well -- is saying yes this could be the worst ever now.
We're really talking about the earthquake impact -- we're not factory and right now the -- impact.
If you factor in the tsunami certainly could easily surpass.
What was the worst in terms of insured losses -- that it's Hurricane Katrina in 2005.
So what we're seeing is that we know that this.
Impacted the earthquake.
It ranks right up there in terms of magnitude it's just behind what hit Indonesia.
So we do have a ranking -- to show you of the worst earthquakes and tsunamis.
That -- that took place within the last.
For five years you're gonna see -- look at this -- elected and what's really interesting as you put actress at the top.
We'll take a look at the Northridge quake you good to see that coming up first that's in 1994.
And many have -- -- clo got into the bottom New Zealand Chile.
New Zealand and get a -- -- does -- the Northridge quake and now we have Japan at the top.
And these are that these -- the five deadliest of in terms of costs they did -- In terms of what it cost insurers.
And it as you noted -- The four of the five happen in the last.
Thirteen months in the insurance industry raising what -- up fire engine red alarms.
They're saying do these insurance companies have enough in terms of capital reserves to foot the bill and you're seeing a lot of concerns about the insurance companies with and Japan and to a load the bonds that they have in the ballot.
-- to raise cash have you heard anything from any annals of C insurance company's repositioning their strategy to maintain a capital reserves -- to see different hedging strategies no we haven't heard anything just yet that it's too early to tell but -- is that with the warning saying.
They're looking to possibly downgrade insurers that they do not have the capital reserve -- that they felt that the -- should.
Should have and again -- is that insurance companies and the banks to.
The banks in Japan have very little cash in the -- that's a separate issue but for the insurance industry they're worried about it liquidity on the balance sheet.
It's risen to 42% in terms of the bond holdings in the balance sheet there it was a 32% a few years ago -- become a little bit more illiquid thanks Louis region would --
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