After Katrina

Tomorrow is the two-year anniversary of Hurricane Katrina, the single largest loss in the history of the insurance industry and the fourth deadliest world catastrophe in 2005 (1,326 dead and missing). Two years on, a quick review of the numbers: insurers have paid an estimated $40.6 billion to policyholders on 1.7 million claims for damage to homes, businesses and vehicles in six states; Louisiana ($25.3 billion) and Mississippi ($13.6 billion) received by far the most insurance dollars to aid in their recovery; and the vast majority of claims have been settled. However, we also know that disaster losses along the Atlantic and Gulf Coasts are likely to escalate in the years to come because of huge increases in development and soaring property values. To be precise, the total value of insured coastal exposure nationwide is more than $7 trillion. After Florida and New York (with more than $1.9 trillion insured coastal property each), the Northeast states of Massachusetts and Connecticut have the highest coastal exposure as a share of all insured exposure in their states. Given these figures, a $100 billion hurricane event is really a  matter of when, not if. Check out further I.I.I. Katrina info online.  

Leave a Reply

Your email address will not be published. Required fields are marked *