Are QBE and IAG disaster-free SMSF investments? It is easy to make the argument that insurance is not a good business in which to invest, being by definition exposed to risk. And risk is not a nice word to self-managed super fund (SMSF) investors.
Certainly the insurance sector copped a battering in 2011, pounded by events such as the January floods in Queensland, followed closely by Cyclone Yasi, the Christchurch earthquake in New Zealand and the triple-whammy of earthquake, tsunami and radiation leak that hit Japan.
And those were just the catastrophes most prominent in our region. Globally, according to reinsurance giant Swiss Re, 2011 was the insurance industry’s second-worst year on record, generating about US$116 billion in claims for the industry.