When a natural disaster hits, the financial and personal burdens can be extremely devastating. However those most affected by these disasters are the insurance companies who insure the properties that were damaged by disaster. In the aftermath of the recent earthquake in New Zealand the Australian Insurance Company, Suncorp, has seen a forty decline in it’s profits. The cost of the earthquake was estimated at twelve billion dollars and has the potential of being the second most expensive earthquake in history for global insurers. In the midst of the destruction and loss of life stemming from disasters people tend to overlook the financial strain placed on insurance companies. But in reality the financial costs are extremely high and can leave insurance companies like Suncorp in a tight spot with an extremely low profit margin.