According to the Insurance Information Institute, 1.7 million policyholders in six states received $40 billion from insurers for Hurricane Katrina losses, which is believed increase sharply in the near future for coastal states.
These figures could seem insignificant, though, when compared to what Dr. Robert Hartwig foresees for future storms. Hartwig, who is president and chief economist of the Insurance Information Institute (I.I.I), recently spoke at the 2007 National Hurricane Conference in New Orleans, and said that a storm comparable to Katrina hitting Florida or other areas of the East Coast could cause $100 billion in insured losses.
In a release issued by the I.I.I, Hartwig said that increased coastal development, rising property values, along with the prediction of more frequent and severe hurricanes in the next 10-15 years, is driving up the cost of property insurance rates in coastal states.
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