A major hurricane hitting Massachusetts could strain the resources of the state-run insurer of last resort and policyholders could be hit with big surcharges, a research group warned today.

The Bay State could suffer billions of dollars worth of property damage from a big storm while also severely straining the resources of the state's FAIR (Fair Access to Insurance Requirements) Plan, according to Robert Hartwig, president of the Insurance Information Institute in New York.

"The number of Massachusetts residents living in hurricane-prone parts of the state has grown dramatically over the past three decades along with the value of the properties in which they live," Mr. Hartwig said in testimony before the Massachusetts state Legislature's Homeowner's Study Commission.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.