Hard Liners On Katrina Claims Face Trouble: Fitch

Insurers that adopted a tough stance on Hurricane Katrina claims involving storm surge face bigger losses and possibly punitive damages in the wake of a federal court ruling last week, according to a rating firm’s analysis.

“Companies that took a harder line by not paying for damages when flood was a factor, or had inconsistent handling of claims by adjustors, are looking at larger losses and potential punitive damages,” said Fitch Ratings in Chicago.