Insurance costs exaggerated: JPMorgan

JPMorgan analysts have questioned estimates of insurance industry losses from the Japanese earthquake of about $US50 billion and suggested a range of $US10 billion to $US15 billion.

Sarah Thompson and Paul Garvey

Updated Mar 16, 2011 – 10.28am, first published at 10.17am

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JPMorgan analysts have questioned estimates of insurance industry losses from the Japanese earthquake of about $US50 billion ($50.5 billion) by Risk Modelling company AIR Worldwide. They have instead suggested a far lower range of between $US10 billion and $US15 billion.

Analyst Siddharth Parameswaran notes that a higher loss outcome would have some chance of turning a soft commercial premium cycle, where industry has so far been hamstrung by excess capacity.