Claims News Service March 5, 1:55p.m.- The president of theInsurance Information Institute (I.I.I.), Dr. Robert Hartwig,recently testified for the U.S. House Financial ServicesCommittee's Subcommittee on Oversight and Investigations aboutclaim-payment processes used by insurers in the Gulf Coastfollowing the 2005 hurricane season. The I.I.I. is a non-profittrade association sponsored by the property/casualty insuranceindustry.

To begin his testimony, Hartwig said that claim payments torestore homes, businesses, and vehicle losses totaled $40.6 billionon 1.74 million claims filed by policyholders across six states. Healso testified that most of these claims have been settled withoutdispute, and that fewer than two percent of homeowners' insuranceclaims in Louisiana and Mississippi currently were in mediation orlitigation.

"Insurance companies strive to settle claims without anydisputes with their customers. And the record is clear that in theoverwhelming number of cases, that is exactly what happens. Theyare routinely settled by adjusters with policyholders at the scenewithout the involvement of attorneys or engineers in a courtroom,"he stated.

Hartwig then informed committee members on new techniques andapproaches taken by insurance companies in order to help themrespond more quickly after a disaster. This includes implementingglobal positioning systems, enhancing claim-processing proceduresto reduce hard-paper exchanges, and working with public officialsto cut through bureaucratic hurdles that impede adjuster access tothe most badly damaged areas following a catastrophe. He also saidthat the insurance industry is at the forefront of supportingstrong building codes, prudent land use management, and thedevelopment of mitigation technologies that will save lives andreduce property damage in the event of future disasters.

For Dr. Hartwig's complete testimony, go towww.iii.org/media/met/katrina/.

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