Daily Market Update

Daily Market Update

Daily Market Update No insurance claims for Boston Marathon bombings
It was a story that rocked the world; the bombing of the Boston Marathon a year and a half ago. Despite the millions of dollars lost by businesses that were forced to close for weeks, the federal government has not labelled the attack as a terrorist incident for insurance purposes, and is unlikely to do so. Marathon bombing claims are close to $2 million but the law states that to qualify as an act of terrorism, an incident must cause at least $5 million of losses. The Department of the Treasury has reviewed the decision not to pay out on claims for Boston and yesterday issued a statement to say that the long-held decision stands. Read the full story.
 
Canada’s employers get an insurance break
Canada’s finance minister Joe Oliver has announced a cut on employment insurance premiums which will see businesses payroll costs benefit by around 15 per cent. In a bid to stimulate hiring, Oliver cut the rate from $1.88 per $100 to $1.70. For businesses currently paying $15,000 in premiums it represents a large saving and may be the deciding factor on hiring new employees. It’s estimated that the move could create 25,000 jobs when it comes into effect next year; it will run through to 2016. Read the full story.
 
Fracking increases health risk says new report
A study by Yale University claims that living near a fracking site doubles the risk of developing lung and skin conditions. Almost 40 per cent of those living less than two thirds of a mile (1km) from a natural gas well report problems with their upper-respiratory system. The study was undertaken in Pennsylvania where there is a high level of fracking activity. The extraction of natural gas is increasing due to the high levels available at a time where other natural resources are in decline but there are concerns by many, not just on health grounds but also environmental; critics of the process say that it can lead to increased risk of earthquakes and subsidence.