An anonymous high bidder recently paid $25,000 for the original ledger page (shown below) from the policy Atlantic Mutual issued to insure the Titanic. Click on the image for a larger view.
Just think: Whoever typed up this page probably thought at the time that it was just one more piece of work to get through that day ...
Question from an IIABNY member: Can you address if the Boston incident would be considered terrorism and only covered if a commercial client elected the coverage?
Answer: For purposes of the federal Terrorism Risk Insurance Program, an “act of terrorism” is one that causes more than $5 million in property and casualty insurance losses; is not an act that occurred in a declared war; and is certified by the U.S. Treasury Department as:
I haven’t seen any estimates yet on the dollar amount of P&C-insured losses. Certainly the property damage was extensive, and damaged businesses may be shut down for some time. However, some of the properties might have been franchises of national chains that self-insure (one of the bombs exploded in front of a Starbucks.) Therefore, I don’t think anyone knows yet whether the P&C losses will exceed $5,000,000. Virtually all of the injured were not working at their jobs at the time, so I’m guessing Workers’ Compensation losses will be relatively small.
We know this much:
What we don’t know right now is the alleged bombers’ motivation. One of the suspects is dead, and the other was communicating only in writing (he has since invoked his right to remain silent.) Therefore, not all of the elements that would enable the Treasury Department to certify this as a terrorist act are in place. In addition, if the total P&C insurance losses are $5 million or less, the department cannot certify it as a terrorist act (again, for purposes of TRIP).
If the department does certify this as a terrorist act, here are the coverage implications for Commercial Property insurance:
Note that all three of these endorsements are approved in Massachusetts, but IL 09 87 01 08 is not approved in New York. Carriers may not write terrorism coverage with a sub-limit in New York.
I am a self-confessed podcast junkie. I have an iPod Touch, and by far I use it more for listening to podcasts than I do for listening to music. One of my all-time favorite podcasts is NPR's Planet Money. Every Tuesday and Friday, the Planet Money team releases a fairly short (20 minutes or so) show about a money-related topic. Somehow, they manage to find interesting stories that you may have wondered about at some moment or other and present them in easy-to-understand, entertaining ways. Some of the offbeat stories they've covered include:
The list is a lot longer. I highly encourage you to give the show a listen. If you find it as interesting as I do, I encourage you to subscribe. Either way, the Planet Money episode of Feb. 8, 2013 is definitely worth your time. In 21 minutes, they cover four stories, the first two of which are insurance-related: Why the federal government is in the flood insurance business; and whether gun owners should have to buy liability insurance. I learned something new about the history of the National Flood Insurance Program. Enjoy!
Meanwhile, in Connecticut
By Southern California standards, it’s a brisk day today with high’s in the 50′s, but imagine if you lived in Trumbull, Connecticut and woke up to this gift left by the Northeast blizzard, Nemo.
via jimkinmartin.com
All I'll say is that it didn't snow this much in upstate New York.
Aon partners with Space Expedition Corporation to provide comprehensive insurance solution for space travelers
LONDON (Dec. 11, 2012) – Aon Risk Solutions, the global risk management business of Aon plc (NYSE: AON), announced today that it formed a partnership with Space Expedition Corporation, the Netherlands-based space tourism company dedicated to making space travel available for private citizens. Aon, in collaboration with Space Expedition Corporation, has designed a unique insurance policy providing comprehensive and customized protection for space travelers.This insurance policy provides coverage for losses related to flight cancellation, postponement or temporary interruption. It is based upon a regular non-appearance cancellation policy and also includes additional supplemental coverage.
“This is an extraordinary opportunity for private citizens to have the opportunity to travel into space,” said Jeff Poliseno, CEO of Aon Risk Solutions’ International Space Brokers Practice. “Our partnership ensures that all those participating in the Space Expedition Corporation program will have comprehensive coverage during their preparatory training and eventual space travel.”
Space Expedition Corporation will begin to operate daily commercial flights to space in 2014 for private citizens that complete the mandatory training program and pass medical testing. The flights will be performed in the Lynx suborbital spaceplane that is designed and built by XCOR Aerospace, a company that utilizes reusable launch vehicles, rocket engines and rocket propulsion systems.
“This partnership reflects our shared philosophy of innovation,” said Michiel Mol, CEO of Space Expedition Corporation. “Our combined services will provide a complete package for clients going to the final frontier and back.”
Now THIS is cool!
Regular readers of this blog (and I hope I still have a few of them left) will note that new content has been absent for a few weeks. I want you to know that I have not abandoned the blog or the podcast.
As you may have seen in the news, parts of New York State experienced a rather significant weather event a few weeks ago. While the area where IIABNY has its office was barely affected, many IIABNY members and their clients were not so fortunate. As a result of the storm and subsequent actions by the New York State government, we have received an usually high number of questions and requests for assistance from our members. Answering those requests will always take priority for me over writing this blog. Consequently, I just haven't had time since the fourth week of October to post here. I promise, however, that new content will appear soon.
Thank you for hanging in there with me.
As insurance professionals, our job is to anticipate the worst and prepare for it. Are we doing that within our own organizations? Can we be better prepared? This five-minute video, courtesy of Site-Seeker, Inc., looks at a few things organizations can do before a crisis to make sure that they're still around after the crisis.
