Monday, June 24, 2019

The 5 biggest insurance claims in the world

In all respects, there will always be risks that are threatening and certainly unwanted to happen. People can die anytime, the healthy can be sick, even valuables can be lost or damaged. Unfortunately, when that risk comes anyone will not know.

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To minimize those risks, some people choose to take advantage of insurance services. A wide range of insurance options are provided. There are life insurance, health insurance, and general insurance (car insurance, home or property, business, and others). High insurance penetration in a country shows high awareness of the importance of insurance.

The high insurance penetration is mostly happening in developed countries, such as countries in Europe, America, China, and Japan. Many insurance customers in these countries often record the largest insurance claim.

Some cases of insurance claims often look strange with an unnatural value of claims, but the company still pay for it. As health insurance claims a cat who is experiencing a failed kidney surgery, reaches US $22 thousand or equivalent to RP200 million. A luxury car collector, like the famous artist Rowan Atkinson, who utilizes insurance to protect his mobil-mobilnya, until Mr. Bean's actor had a claim on his car almost one-third of the price of cars reaching 3.5 million Pound sterling.

There are also automobile companies that utilize insurance services to protect prototype cars. This is like done by the Bugatti Veyrons Super sports car company. In an engineer test the company crashed two units of his car, but from the experiment, the company was actually getting insurance claims reaching US $800,000. 

And individually, a record of insurance claims occurred 2012 then, due to a lawsuit against the accident suffered by a 17-year-old student named Agnes Collier and her mother. The accident on the highway led to the death of the mother as well as a severe injury to Collier's head. Due to the accident, the mother received a donation of US $37 million, and Collier received about US $11.5 million annually plus the hospital care fee for the recovery of its injury.

Meanwhile, mass insurance claims are usually triggered by events that are unpredictable before. Here is the biggest insurance claim ever happening in the world, quoted from ashburnham-insurance.co.uk under the title "10 Biggest Insurance Claim Payouts of All Time ".

Financial crisis year 2008, claim: US $21 trillion 

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Subprime mortgages, housing credits are given to debtors with a bad credit history or have not yet had a credit history at all, being the trigger of the 2008 economic crisis. Property bonds are held by financial companies, such as Lehman Brothers, Merrill Lynch, Goldman Sachs, Northern Rock, UBS, and Mitsubishi UFJ, making the company a bankruptcy. 

A bankruptcy Lehman Brothers triggered the intensity of the crisis to the world, including Europe. The UK announced a banking rescue package of at least 50 billion pounds (US $88 billion). Meanwhile, the Germans provided assistance of 50 billion euros (US $68 billion) to save the Hypo Real Estate Bank. In addition, the decrease in interest rates also occurred at 0.5% in five central banks, namely the European Central Bank (ECB), the Bank of England (BoE), the Bank of Canada (BoC), the central Bank of Sweden (Sveriges Riksbank), and the Swiss National Bank (SNB). Not only banking, the company has also been hardened because it has to prepare funds for claims estimated at 21 trillion pounds.

However, this financial crisis actually suggests that many insurance providers do not have enough capital to pay for such claims. American International Group (AIG), one of the largest insurance companies in the world, nearly broke after its collateral debt obligations during the crisis.

Hurricane Katrina, Rita & Wilma year 2005, claim: US $130 billion

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The Atlantic storm that took place in 2005 had sparked Hurricane Katrina, Rita, and Wilma. The disaster has killed 3,913 inhabitants. The cost of damage incurred reached US $158,9 billion, with approximately US $130 billion paid as an insurance, while US $45 billion was paid for damages caused by Hurricane Katrina himself. 

Hantaman Katrina destroyed some parts of the United States ranging from Lousiana to Florida Panhandle. The state of Lousiana and Mississippi became the most severe area, while 80% of New Orleans were covered in flood after flood guard levee collapsed.

Thousands of buildings were severely damaged, 1,800 casualties died, and more than a million people were displaced. After the event, a crowd-crowded insurance client filed a claim for the incident, such as accidents, home damage, to life insurance, with the overall reaching US $130 billion.

The bankruptcy of Lehman Brothers year 2008, claim: US $100 billion

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Lehman Brothers ' losses are sourced from the number of subprime mortgages that are too much and swollen throughout the year 2008. The Fed had intended to liquidate its assets from Lehman Brothers, but Lehman hastily fell by more than 90%. Finally, the company was collapse and removed from the list of New York Stock Exchange.

It is estimated that claims arising from Lehman Brothers ' fall touched the US $100 billion. Payment struck after the largest investment bank number four in the United States it declared bankruptcy. Customers then make a claim for the funds invested in the bank.

WTC tragedy September 11, 2001, claim: US $40 billion

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The terror attack on the United States World Trade Center (WTC) known as the tragedy of 11 September (9/11) in 2001 then killed 2,996 people and injured 6,000. Material losses amounted to US $123 billion due to the activities of the WTC building for about one month after its destruction.

The United States government should provide US $15 billion of assistance to airlines whose aircraft were plowed in tragedy 9/11, namely United Airlines and American Airlines. Insurance claims are also estimated to reach US $40 billion that insurance companies pay to the victims as compensation.

Hurricane Sandy year 2012, claim: US $36 billion

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The Atlantic 2012 storm season sparked Hurricane Sandy sweeping the Bahamas region, Eastern Canada, and most of the US East side. Thousands of houses damaged and surrounding infrastructure destroyed. The losses of the event were estimated at US $75 billion and 233 casualties.

The Pascaperistiwa, the insurance company is flooded with claims for damage and losses suffered by the customers. The amount reaches US $36 billion. However, from this event, there are many false or fraudulent claims that thousands of clients must be rejected.

False claims are known after an engineer performs inspections. At the very least, there are 175 claims of inspection results handled by the company to reduce or reject claims. However, a lawyer in Texas Court, Steve Mostyn, managed to win hundreds of millions of dollars against insurance companies on behalf of homeowners through other claims, a criminal act of rape. 

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