Navigation Links
Aon Benfield Forecasts Potential Impact on the Insurance Industry Resulting From the Alleged Madoff Scandal
Date:1/14/2009

LONDON and CHICAGO, Jan. 14 /PRNewswire-FirstCall/ -- Aon Benfield, the world's premier reinsurance intermediary and capital advisor, released today a preliminary forecast of direct insured losses resulting from the alleged Bernard Madoff Ponzi scheme.

(Logo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO)

"While the maximum potential exposed insurance limits are estimated to be over $6 billion, the range of direct insured losses will be a far smaller number, most likely somewhere between $760 million and $3.8 billion, with a best estimate of $1.8 billion," said Stephen Mildenhall, head of Aon Benfield's Actuarial and Enterprise Risk Management practice. "These figures represent material costs, but are not likely to have a significant impact on the insurance industry," he continued.

The high end of the likely range of insured losses represents less than 20 loss ratio points on global Directors & Officers, Errors & Omissions, and Fidelity premium. Since most insurance claims will be concentrated in the financial institution sector, the loss ratio within this specific segment may be significant. Based on estimated financial institution insurance premiums, the loss ratio impact could range from 40 to 180 loss ratio points in this specific segment. Given the claims-made nature of most professional liability coverage, losses would likely be spread over policy years 2007 and 2008 (or report years 2008 and 2009).

"When the effect of this scandal is combined with the impact of the ongoing credit crisis, many insurers will see profitability deteriorate even further in their financial institutions book of business," concluded Mr. Mildenhall. "Optimists may point to a potentially positive outcome -- a more rapid hardening of rates in the professional liability market."

Aon Benfield will continue to update this preliminary analysis and revise results as new information becomes available. A copy of the preliminary report released today is available upon request.

About Aon Benfield

Aon Benfield is the world's premier reinsurance intermediary and capital advisor, providing clients with integrated capital solutions and services. The company offers clients access to every traditional and alternative market in the world, through an international network of offices spanning over 50 countries and more than 4,000 professionals. Its worldwide client base is able to access the broadest portfolio of integrated capital solutions and services, world-class talent, unparalleled global reach and local expertise to best meet their business objectives. Aon Benfield is the industry leader in treaty, facultative and capital markets transactions.

    For further information please contact:

    David Bogg                               Kathleen Hipp
    London                                   Minneapolis
    t: +44 (0)20 7522 4016                   t: +1 952 886 8161
    e: david.bogg@aonbenfield.com            e: kathleen.hipp@aonbenfield.com


'/>"/>
SOURCE Aon Corporation
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. NOAA Hourly Air Quality Ozone Forecasts Now Available Coast to Coast
2. UCAR weather forecasts aim to reduce African meningitis epidemics
3. The Noblis Center for Health Innovation Forecasts 2009 Trends In Provider Health Care Delivery
4. DNA vaccine against multiple sclerosis appears safe, potentially beneficial
5. UCLA study identifies designer estrogen as potential MS drug
6. Office-Based Medical Treatment and Internet Resources Are Potential Solution to Rising Painkiller Misuse Among Teens, Young Adults
7. Common abdominal pain may be due to a potentially treatable newly recognized inflammatory reaction
8. Potential new approach to treat cognitive impairments in schizophrenia
9. Nosespray vaccine using aloe vera has exciting potential, researcher says
10. Network approach identifies potential breast cancer susceptibility gene
11. Liver fibrosis will be treated by a potential target
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/10/2016)... ... February 10, 2016 , ... Early this week, Team Iconic ... awareness of Nestlé KITKAT as the first global confectionery brand sourced from 100% sustainable ... and the quality of their product, through activities that focus on better farming, better ...
(Date:2/10/2016)... ... February 10, 2016 , ... ... care communications company offering education, research and medical media, has launched ... working in infectious diseases. , As the all-inclusive resource for infectious disease ...
(Date:2/10/2016)... ... February 10, 2016 , ... ... its revolutionary new 2.0 version at the International Roofing Expo in Orlando, Florida ... of the world's most advanced weather technology in the hands of consumers, roofing ...
(Date:2/10/2016)... ... February 10, 2016 , ... InDemand Interpreting ... Healthcare, recently partnered with Heart City Health Center to improve access ... years, Heart City Health Center has provided the Elkhart community with access to ...
(Date:2/10/2016)... ... February 10, 2016 , ... Compliancy Group LLC ... of medical professionals throughout the country. The Guard was specifically designed to handle ... procedures, employee training, regulatory updates, and compliance coaching. , In addition to meeting ...
Breaking Medicine News(10 mins):
(Date:2/10/2016)... 2016  Oxis International Inc. (OTC/QB: OXIS) announced today ... as a "clinical trial triumph" after one of the ... cancer remission. Daniel Vallera , a ... Center. --> Daniel Vallera , a ... Center. --> An article on the ...
(Date:2/10/2016)... Association, in partnership with ALS Finding a Cure, is pleased ... track TDP43 aggregation. The successful team(s) with the most developed ... --> --> ALS is ... brain and the spinal cord. Eventually, people with ALS lose ... leads to total paralysis and death within two to five ...
(Date:2/10/2016)... LONDON , February 10, 2016 ... --> Puerto Rico Healthcare and Life Sciences Report ... new 61 page Puerto Rico Healthcare and Life Sciences ... sciences insights into the fifth largest territory in the world ... R&D, medical device and diagnostics manufacturing, and more universities per ...
Breaking Medicine Technology: