In the Wake of the Tsunami ….

The Southeast Asia earthquake and tsunami disaster occurred while many of us where at home enjoying the holidays with our families. At Insurance Journal, the catastrophic event took place in between the deadlines for our January issues; therefore we were unable to provide any print coverage in our Jan. 3 issue. The next issue came and went, and for some reason it still seemed difficult to put down any words to describe the impact of the event, other than to report the facts.

In the several weeks passing, the devastation of the tsunami has become quantified by numbers–the death toll, the number injured, the number missing, the estimated loss to insurers, the amount of time it will take to rebuild, and the amount of monetary donations that have poured in throughout the world.

Here at IJ, employees donated a portion of their earnings to relief efforts, and the company matched each employee’s contribution. Elsewhere in the West, insurers, agents, and associations generously donated to efforts as well. On page 62, we highlight just a few of those organizations in the industry who have made a difference.

The good news, for the insurance industry at least, is that the tsunami disaster will likely not have a significant effect on the industry. Risk Management Solutions recently estimated that insured losses resulting from the earthquake and tsunami will be less than $4 billion, with property claims making up the bulk of the insured losses.

RMS reported that tourist hotels and resorts, local housing, boats and ships, motor vehicles, and industrial plants were the main types of property affected. Life and health claims will likely only arise for foreign tourists that were in the affected region, as there was a low penetration of insurance for local residents.

While it is of good fortune for the industry to not have suffered a significant blow during this tragedy, the fact remains that the Southeast Asia tsunami and earthquake disaster is one of the most horrific natural catastrophes any one of us may see in our lifetime. The death toll has now reached unfathomable proportions and continues to rise. The generous contributions from global citizens have brought humanitarian efforts to a new light–and with these contributions the region will slowly be able to rebuild and return to some sort of normalcy, although life for the tsunami survivors will likely never be the same.

It is my hope that through this experience, we can all become more aware of the plight of those in need. Beyond the tsunami disaster, humanitarian efforts continue in all parts of the world and still need our contributions. Please remember that long after the memories of the tsunami pass, help is still needed for others suffering globally.

If you are interested in making a donation to the tsunami relief efforts, or to other humanitarian efforts, please visit www.insurancejournal.com/tsunami/.

Topics Catastrophe Natural Disasters