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Floods, Tsunami May Dent ‘Black Box’ Supply-Chain Insurance
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Insurers and reinsurers may limit the coverage they offer for supply-chain disruptions and negotiate higher prices after record claims from natural disasters in Japan and Thailand.
Most of its 1.5 billion euros ($2 billion) of net claims related to the earthquake and tsunami that hit Japan in March stem from commercial covers that include business interruption insurance, said Munich Re, the world’s biggest reinsurer. Insured losses from the Thai floods that disrupted factories in Japan could be as much as $11 billion, rival Swiss Re Ltd. said.