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Hiding the costs of the Fukushima nuclear disaster, Hurricane costs and corporate bailouts? Insurance report Dec 2017

Posted to nuclear-news.net

Posted by Shaun McGee

29th Dec 2017

For the insurance companies, The Japan 2011 Earthquake and nuclear disaster was not a concern, as I lay out below. The costs were to be managed largely by the government. The Insurance companies were getting of so lightly that they even paid out compensation to the victims, though they were not obliged too!

SwissRE, whose data this article is based off, compiles reports for the Global insurance industry. The Insurer with the largest impact from the Fukushima 2011 disaster was Lloyds of London with some 2 billion Dollar loss, 20 percent of the total insurance industry costs. This may account for the interest in the UK Government helping cover up the health and environmental impacts of the disaster in the long term, having got “skin in the game”, including the damage to the UK`s nuclear industry (MOX fuel reprocessing and nuclear reactor new builds etc).

The actual costs of the disaster as of April 2017 was 626 Billion Dollars up from the Japanese government total cost of the disaster of roughly 9 billion Dollars. Although, the initial figure seems to be based on the Insurers losses and not the governments calculations. The insurers, probably thinking of their 100`s of billions dollars investments in the nuclear industry (with the big 5 UK based insurers having 300 billion pounds sterling invested until they divested into PFI contracts leaving the UK tax payer holding the nuclear energy bill), played down the total costs and even seemed to bemoan the extra regulations that would be brought in as a response to the nuclear aspect to the Tohuku disaster in 2011.

Finally, In a recent article published on RT concerning the report for the year 2017 from Swiss RE we get dramatic headline of huge increased  loses to some 300 Billion Dollars (Less than half of the Fukushima disaster cost)  with 100 Billion of that specific to the USA. Once again though we do not get the uninsured loses from the disasters. And that is not the only problem.  SwissRE does not mention that the actual US figures for total losses are 135 Billion Dollars for the hurricanes, 9 billion for the fires and the largely uninsured losses of 95 billion for Puerto Rico and similar for the Virgin Islands. Swiss RE`s recent claim that total insured loses from around the world have risen to 136 billion Dollars seems to be more of a PR move to hide the fact that governments are using tax payer money to bail out the Insurance companies over man made and natural disaster costs? I will leave evidence and links below;

 

“A private think tank says the total cost of the Fukushima disaster could reach ¥70 trillion ($626 billion), or more than three times the government’s latest estimate. In a study Saturday, the Japan Center for Economic Research said costs of dealing with the heavily damaged Fukushima No. 1 nuclear plant run by Tokyo Electric Power Company Holdings Inc. could rise to between ¥50 trillion and ¥70 trillion.

In December, the government estimated the costs would reach roughly ¥22 trillion. “If costs rise, the public burden could greatly increase. The country’s nuclear policy needs to be reviewed,” JCER said. The government’s initial expectations pegged the costs at ¥11 trillion.”  https://www.japantimes.co.jp/news/2017/04/01/national/real-cost-fukushima-disaster-will-reach-%C2%A570-trillion-triple-governments-estimate-think-tank/#.WkfdJvZpFhE

Page 21 of this Jan 2012 RE Swiss Global insurance report said of the Fukushima nuclear disaster

Screenshot from 2017-12-30 18:46:02

http://www.swissre.com/library/Global_Risks_Report_2012.html#inline

In the 2013 Fukushima specific report, Swiss RE did give some figures for the cost of the disaster;

Screenshot from 2017-12-30 18:48:32

From 2013 report link; http://www.swissre.com/library/archive/A_History_of_Insurance_in_Japan.html

RT report for December 2017 from Swiss RE ;
“Economic losses from natural and man-made disasters have soared by 63 percent in 2017 to an estimated $306 billion, according to a report from reinsurance firm Swiss Re.

 The company estimates, insured losses from natural and man-made disasters around the world was approximately $136 billion, up from $65 billion in 2016. This is “well-above the annual average of the previous ten years, and the third highest since… records began in 1970,” Swiss Re said in its report. The reinsurance firm said insured losses from disasters have exceeded $100 billion in a number of years.

“The insurance industry has demonstrated it can cope very well with such high losses,” said Martin Bertogg, Head of Catastrophe Perils at Swiss Re.” https://www.rt.com/business/414623-global-disasters-2017-cost/

 

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December 30, 2017 - Posted by | Uncategorized

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