Japan quake: Insurers hit by claim fears

Insurance company shares around the world have been hit as concerns grow about the cost of reconstruction in Japan following Friday's earthquake and the resulting tsunami.

Initial estimates suggest the damage could cost the insurance industry up to $35bn (£22bn).
In Frankfurt, Munich Re fell 3.4% while Allianz lost 2.9%. In London, Aviva fell 3.1% and in Paris, Axa lost 3.3%.
Analysts say the disaster could trigger higher insurance prices in the future.
In the US, insurers also suffered, with AIG down 1.3% and Travelers 0.4% lower in early trading.
Global insurance companies had already taken a hit from the disaster on Friday.
Varying estimates Experts said it was difficult to forecast accurately the final bill from the earthquake and tsunami.
The uncertainties about the extent of the damage and level of claims mean analysts' estimates about the cost to the insurance industry vary widely.
Risk modelling agency AIR Worldwide put the bill at between $15bn and $35bn, while James Shuck from Jeffries International estimated a loss to the sector of between $10bn and $20bn.
"Given the nature of the destruction, combined with the ongoing recovery efforts and evacuation areas, it will take some time to estimate the damage," said reinsurance giant Swiss Re.
However, any further damage caused by explosions at nuclear plants was unlikely to hit insurers, it added.
"Generally, coverage for nuclear facilities in Japan excludes earthquake shock, fire following earthquake and tsunami, both in terms of physical damage and liability," it said.
"Coverage for property policies excludes nuclear contamination."
Munich Re said the impact of a nuclear accident would "not significantly affect the private insurance industry".
A series of explosions at the Fukushima Daiichi plant have raised concerns about a possible meltdown at one of its three reactors.

Japan rebuild could take five years, World Bank says

The scale of the devastation in the north-eastern part of Japan is immense

Japan may need up to five years to rebuild from the disastrous earthquake and tsunami that has caused up to $235bn (£145bn) of damage, the World Bank said in a report.

It also estimates that 0.5 percentage points will be shaved from the country's economic growth this year.
However, it expects growth to pick up again in the second half of the year.
The 11 March earthquake and tsunami, disrupted production networks in the automotive and electronic industries.
"Damage to housing and infrastructure has been unprecedented," the World Bank said.
"Growth should pick up through subsequent quarters as reconstruction efforts, which could last five years, accelerate," it said.
The bank estimates the damage to be between $123bn and $235bn.
This is the equivalent of between 2.5% and 4% of the country's economic output in 2010.
The World Bank stressed that it was too early to accurately assess the cost of the damage, but said it was likely to be greater than the 1995 Kobe earthquake.

military chief

The aim of military action is to protect civilians, Mr Hague said

The head of Britain's armed forces has told the BBC that Libyan leader Col Muammar Gaddafi is "absolutely not" a target for military action.

Gen Sir David Richards said that was "not allowed" under the UN resolution authorising military action to protect civilians in Libya.
Defence Secretary Liam Fox has said targeting Gaddafi could "potentially be a possibility" .
But the US Defence Secretary said that would be "unwise".
Chief of the Defence Staff Gen Richards told the BBC on Monday he was "delighted" that RAF Tornados aborted their mission because civilians were in the target area as Col Gaddafi was trying to set a "propaganda trap".
"We're very very alert to our responsibilities to the civilian population," Gen Richards said.
Asked whether Col Gaddafi could become a target himself, he said: "No, absolutely not. It's not allowed under the UN resolution and it's not something I want to discuss any further."
The issue was raised in an interview with BBC Radio 5 live on Sunday when UK Defence Secretary Dr Fox was asked whether Col Gaddafi himself was a legitimate target.