New turbulence FTD - series: The main risks for the financial market
Zweineinhalb years after the bankruptcy of Lehman Brothers is in the stock market back up , banks generate solid profits. But the crisis is not over . In an eleven-part series highlights the FTD, which lurks the threat.
- Die neuen Crash-Risiken China drosselt Amerikas Frischgeldzufuhr
- Die neuen Crash-Risiken Die Panik der Versicherer vor dem Dauerzinstief
- Die neuen Crash-Risiken Das 2000-Mrd.-Euro-Problem der europäischen Banken
- Die neuen Crash-Risiken Die Angst vor der zweiten Welle
- Infografik Kapitalmarkt zwischen Furcht und Euphorie
Part 2 : EU rules hamper inflation- Investments
would suffer most from a surge in inflation but the property- casualty insurance. Assured cars , buildings , personal accident and liability risks . A well-known phenomenon observed after each hurricane insurance : suddenly rising prices for building materials and craftsmen services dramatically - usually borne by the insurer.
More to ECB, Financial crisis, Inflation, Interest rate policy
But here the damage is almost always organized in a few months. The main problem with inflation , the companies in the automobile insurance and other liability coverages . For insurers and reinsurers often have decades to pay for certain damages . This applies to victims who are sitting in a wheelchair after a car accident and need care , children, the handicapped because of errors in treatment of the doctor or midwife come to the world, or victims of chemical accidents or defective products from pharmaceutical manufacturers and other industries.
In such cases, the insurer returns a loss reserve . If, however, during the decades of handling significant price increases , only this provision is not made , he nachreservieren - as with the asbestos damages for which been paid significantly more than 200 billion dollars and have been reserved .
The industry distinguishes between various forms of inflation - the general price and wage increases , alongside the social and medical inflation. The social inflation arises because higher courts confirm claims. The medical inflation is caused by more expensive methods of treatment.
The investments of the insurer with which they cover their obligations to keep long-running damage , almost never step with the various forms of inflation. Scor - Chief Kessler is concerned that the new capital adequacy rules of the EU, as Solvency II are to take effect in 2013 , exacerbating the negative trend yet .
EU Insurance Supervisors had provided high capital requirements for investments of the insurers in the more inflation- shares but not to investment in fixed interest government bonds , critical of Kessler. " When it's the inflation , the supervisor asked why we were not prepared for a sharp rise in interest rates. The current version of Solvency II is the best way , the insurance industry has to plunge into a disaster . "
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