Adjusters are making progress getting to the worst hit areasfrom Hurricane Katrina as insurance regulators get together withindustry executives to iron out the response to policyholders.

Hart Hubbard, assistant vice president, catastrophe services forParsippany, N.J.-based GAB Robins, a claims management firm, saidadjusters are on the ground with operations fully up and running inthe three most heavily damaged states--Louisiana, Mississippi andAlabama. More adjusters are expected to be sent in as the workprogresses.

The biggest challenge remains communication, as telephoneservice is still subject to limited capacity, he said. But power isslowly being restored, allowing the firm to set up claims officesin five cities throughout the affected area.

"Damage is very severe," Mr. Hubbard said.

Aside from communication, adjusters are challenged to findsleeping quarters. But, he said, "they are very resourceful and aregetting the job done."

"Every day is getting a little better," he said, "but it isgoing to be a while before we get into New Orleans Parish."

Besides the communications problems between claims offices,there are also challenges contacting policyholders displaced by thestorm. He said cell phones are virtually the only way they cancontact one another regarding claims. With limited service, he saidthis will remain a challenge until the communication infrastructureis repaired.

In Texas, the Texas Department of Insurance, working withinsurers and the American Insurance Association, has created theTexas Disaster Coalition, said Tiffany O'Shea, director of publicaffair for AIA.

She said the coalition has insurance assistance centers nearFederal Emergency Management Agency disaster recovery centers setup for evacuees from New Orleans. Staff from companies, AIA andstate insurance departments are on hand to answer questions andhelp policyholders begin the claims process.

She said the department is working to find space for carriers tobring their mobile claims centers into the evacuation centers tofurther help the claims process.

The United States Postal Service has created new ZIP codes forthe facilities, and a mail call system for those in shelters. Thosein shelters also will have access to computers and telephoneservice.

The state has set up a consumer help line atwww.tdi.state.tx.us/consumer/katrina.html.

"We are working to try to get to [policyholders] and help themas quickly as possible," said Ms. O'Shea.

Louisiana Insurance Commissioner J. Robert Wooley, along withMississippi Insurance Commissioner George Dale and AlabamaInsurance Commissioner Walter A. Bell, met with insuranceexecutives today in Atlanta to discuss companies response to thisdisaster.

"We are going to Atlanta to deliver the message that we don'twant things to move too slowly, and that each of our states intendsto be aggressive advocates for our affected citizens," Mr. Bellsaid in a statement.

Mississippi has requested companies in the state grant a 60-daygrace period on collection of premiums.

However, it appears it will be a while before everything issettled.

"It is going to take months to finish the job," said Mr. Hubbardon the claims issue. "I can see this going into 2006."