August 2013

Most CFOs would jump at the opportunity to double their company’s war chest.  After all, war chests better enable businesses to deal with uncertainty and contingencies.  They also enable CFOs to have capital to support expansion or business moves in the future.

When you hear the words “war chest,” you probably don’t think about insurance.  However, insurance can also addresses uncertainties and contingencies facing a business.  And, if a business goes one step further and sets-up and owns its own insurance company

This week, Captive Review reported that China and Canada have both experienced billion dollar losses in 2013 as a result of natural catastrophes. Such catastrophes can be devastating to businesses, and losses almost always extend well beyond property damage.

The article also noted that this has been a “light” tornado season in the U.S.  However, “Steve Jakubowski, president of Impact Forecasting, warned that attention should be refocused on the potential for a major hurricane landfall as the US is about to enter the peak of the Atlantic Hurricane Season.”

Heavy rains caused flooding and power outages in Toronto.  Total economic losses were estimated at $1.5 Billion, but only half of losses were covered by insurance.