Industry Claims-Paying Capacity Will Weather Hurricane Season

The insurance industry is “financially prepared to pay the claims that may arise out of significant natural disasters in 2013 and beyond,” said Dr. Robert Hartwig, president of the Insurance Information Institute, looking ahead at a predicted active hurricane season.

The industry’s claims-paying capital was at a record $608 billion at the start of the second quarter of 2013, driven by premium growth, a reduction in catastrophe losses despite ongoing claims from Superstorm Sandy, and favorable prior-year reserve development. Direct insured catastrophe losses during the first quarter were $3.6 billion, among the costliest on record, but fell by $1 billion in the current period.

CSU, TSR Continue to Call for Above-Average Hurricane Season

“The growth in the industry’s capital base occurred despite the fact that insurers paid out nearly $70 billion in catastrophe-caused claims over the prior two years,” says Hartwig in an I.I.I. statement. “The fact that the industry was able to meet its financial obligations after Sandy, and enter 2013 in such a strong financial position, is continued evidence of the property/casualty insurance industry’s remarkable resilience in the face of extreme adversity.”

Wind damage from tropical storms and hurricanes is covered under standard homeowners, renters and business insurance policies, the I.I.I. says. Flood damage resulting from storm surge caused by hurricanes is excluded under standard property insurance policies. However, it is available from the government’s National Flood Insurance Program and some private insurers. 

Optional comprehensive auto insurance policies may cover losses due to wind damage, flooding and falling objects such as tree limbs.

Comments

Resource Center

View All »

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

Get $100 in leads with $0 down!

NetQuote's detailed, real-time leads have boosted sales for thousands of successful local agents across the...

The Growing Role of Excess & Surplus Lines in Today’s...

The excess and surplus market (E&S) provides coverage when standard insurance carriers cannot or will...

Increase Sales Conversion with this Complimentary White Paper

This whitepaper will share proven techniques - used by many of the industry's top producers...

D&O Policy Definitions: Don't Overlook These Critical Terms

Unlike other forms of insurance where standard policy language prevails, with D&O policies, even seemingly...

Environmental Risk: Lessons Learned from Willy Wonka and the Chocolate...

Whether it’s a chocolate factory or an industrial wastewater treatment facility, cleanup and impacts to...

More Data, Earlier: The Value of Incorporating Data and Analytics...

Incorporating more data earlier in claims lifecycles can help you reduce severity payments by 25%*...

How Many Of Your Clients Are At Risk Of Flood?

Every home is vulnerable to flooding. Learn four compelling reasons why discussing flood insurance with...

Gauging your Business Intelligence Analytics Capabilities and the Impact of...

Big Data, Data Lakes and Data Swamps, How to gauge your company's Big Data readiness....

Extending Contact Center Capabilities Across the Insurance Enterprise

Today advancements in technology are making a big impact on business and society. To yield...

Personal Lines Pro eNewsletter

Critical insights into the personal auto, homeowners, and other consumer insurance markets to help P&C professionals stay informed – FREE! Sign Up Now!

Advertisement. Closing in 15 seconds.