When Florida suffered through its four-pronged hurricane siege last year, the insurance industry responded quickly, but not quick enough, according to some critics. Even the infusion of thousands of adjusters from outside the State of Florida, bolstered by licensing relaxation from the state's DOI, failed to totally squelch criticism from multiple fronts.

Now we have the Katrina catastrophe. There's nothing additionally enlightening that can be said here, at this time. We all have access to the myriad news outlets, so all parties know what they're in for in the months and years ahead. But do we really? On Sept. 15th, Ray Nagin, mayor of New Orleans, announced that certain sections of the city would be reopened to inhabitants beginning the next day, and that overall, the city would rebound and rise to even greater heights than pre-Katrina. And certainly, we keep all the victims in our prayers.

That being said, the Insurance Information Institute again has raised its insured loss prediction, which now hovers around approximately $80 billion for P & C; but that doesn't count ancillary coverages such as BI, tourism losses, income losses, and the cost of repairs to roads, bridges, levees, and sewer systems. Then, too, we have to tally life insurance coverages for those who didn't survive Katrina's wrath. All in all, the financial toll for those concerned will be in the hundreds of billions of dollars. Is there light at the end of this long, dark tunnel? Eventually, but we won't see clear emotional sunshine on the Gulf Coast for a painfully long time.

At this writing, the federal government and its agencies (especially FEMA) are taking a lot of well deserved heat for their lack of preparation and slow response. Does that take the focus off of us, as an industry, as we respond to this catastrophe? Not for a millisecond.

Maybe last year's horrific hurricane season was a rehearsal arranged by some divinity to help us prep (rehearse?) for Katrina. And maybe this is the perfect time to show said divinity that we're up to the challenge. We already know of the thousands of poor who are left with absolutely nothing, and who carried no insurance. We also are well aware of the special challenges facing the adjuster and insurance cat teams who have already converged on the affected areas, which encompasses over 90,000 square miles.

One of the most heartbreaking challenges facing insureds probably will be the ultimate realization that many homes still standing, while exuding rays of hope to their former occupants, will have to be demolished due to mold or other contamination.

Emotions on all fronts will run high as we proceed through this heretofore unimaginable process. But you've already proved, repeatedly, that the adjuster contingent of the insurance industry can meet any challenge. What you must remember at all times is the key role you're playing in the overall recovery of the Gulf Coast, the dire need for your services by emotionally raw insureds, your ultimate purpose and goal of providing honest assessments and fair and rapid resolution of claims, and your obligation to ferret out fraud … all at the same time.

Good luck and God bless you all — you, your insureds, and all the others impacted by Katrina.

Special Reports /

You Are the Key to Resolving this Crisis

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