Claims News Service March 5, 1:55p.m.- The president of the Insurance Information Institute (I.I.I.), Dr. Robert Hartwig, recently testified for the U.S. House Financial Services Committee's Subcommittee on Oversight and Investigations about claim-payment processes used by insurers in the Gulf Coast following the 2005 hurricane season. The I.I.I. is a non-profit trade association sponsored by the property/casualty insurance industry.

To begin his testimony, Hartwig said that claim payments to restore homes, businesses, and vehicle losses totaled $40.6 billion on 1.74 million claims filed by policyholders across six states. He also testified that most of these claims have been settled without dispute, and that fewer than two percent of homeowners' insurance claims in Louisiana and Mississippi currently were in mediation or litigation.

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

Hartwig then informed committee members on new techniques and approaches taken by insurance companies in order to help them respond more quickly after a disaster. This includes implementing global positioning systems, enhancing claim-processing procedures to reduce hard-paper exchanges, and working with public officials to cut through bureaucratic hurdles that impede adjuster access to the most badly damaged areas following a catastrophe. He also said that the insurance industry is at the forefront of supporting strong building codes, prudent land use management, and the development of mitigation technologies that will save lives and reduce property damage in the event of future disasters.

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

Interested in more catastrophe news and in-depth articles? Head over to Claims' catastrophe channel for more information.

Special Reports /

I.I.I. President Testifies for House Subcommittee on Oversight and Investigations

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