|Loss adjustors of Promiseland assessed the losses of the insured buildings and recommended to Promiseland on how much it has to pay to the insured. The reinsurer, in this case plays little or no role in the claims assessment
There were many collapses of the first storey for those insured buildings that are two to four storey high. Loss adjustors reported a short-column problem in the insured buildings, which were three to five storey high. Brick walls connected to columns on the first floor stiffened the bottom portion of the columns causing stress concentrations on the second floor where failures occurred. Losses amounted to NT$18 billion.
Although Trust Alliance incurred a significant amount of losses because of the massive earthquake damage, the earthquake’s biggest impact is likely to be shouldered by reinsurers, including Munich Re, Swiss Re and Allainz.