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Allstate's declines were tied mostly to the higher catastrophe losses and a rise in claims and claims expense, plus a jump in operating costs.
Third-quarter net income at American International Group, one of the insurance giants named an investigation into questionable sales practices, rose 7.5% in spite of higher catastrophe losses, but missed Wall Street's forecast by a penny.
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Mindful of the golden state's high catastrophe risks, which include earthquakes as well as blazes, Allstate recently stopped issuing insurance policies to new homeowners.The rise in singed acres is largely due to two factors: widespread drought, which may become endemic thanks to climate change, and the Forest Service's policy of stopping all fires as soon as they start.
In part, Berkshire said the "unsatisfactory" results "reflected the effects of inadequate rates charged in recent years as well as higher international catastrophe and large property losses".
As consignors demanded ever higher estimates, catastrophe was inevitable the moment newcomers willing to go along with any estimates deserted the market.
Meanwhile, some engineers worry that any imperfections in the tube could cause a high-speed catastrophe and result in the actual annihilation of travellers.
There will be no let-up in demand for high-yield catastrophe bonds, which provide lower returns in the event of a natural disaster, and litigation finance, in which investors underwrite lawsuits that may lead to big settlements.
As Gladwell wrote in that 1996 essay, "We have constructed a world in which the potential for high-tech catastrophe is embedded in the fabric of day-to-day life".
Writer points out that additional safety features in a given system cause humans to stress that system, reducing the safety margin to near its previous level... What accidents like the Challenger should teach us is that we have constructed a world in which the potential for high-tech catastrophe is embedded in the fabric of day-to-day life.
Malcolm Gladwell wrote in a 1996 New Yorker essay, "We have constructed a world in which the potential for high-tech catastrophe is embedded in the fabric of day-to-day life".
Still, despite these high-profile catastrophes, many agree with Williams.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com