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 »

Complimentary White Paper: The Compression of Workplace Time

How brokers and carriers respond to the compression of workplace time will create significant competitive...

The Changing Insurance Consumer: 6 Ways to Create Profitable Relationships

Today’s mobile and web-savvy consumers have new expectations when it comes to interacting with your...

Contractors General Liability Coverage 102

What is a prior work exclusion? Which option is right for my client? Why do...

Sign up today to get a 50% matching credit -...

Insurance marketing sometimes seems like it's a game of swings and misses, but we're here...

Guide: 5 Steps to Selling Cyber

Cyber risk and data security is on the agenda of every business owner and executive....

Citation Correlation

Do rigger and signalperson qualifications correlate with the cause of crane and rigging accidents? ...

Complete Guide to Electronic Signatures in Property & Casualty Insurance...

In property and casualty insurance, closing new business quickly is key. Learn how to leverage...

INSTANT ACCESS: Complimentary Sales Closer Questionnaires

Help property owners or managers compare your commercial residential property insurance coverage vs. the competition....

Determining Vacant Property Perils and Valuations

Are your clients fully covered for Vacant Properties? In this economic climate, your insureds may...

Risk Management for Law Firms

This package of 3 concise risk management articles offers straightforward content and practical suggestions law...

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.