Some off-the-cuff comments made by the Department of Homeland Security Secretary Michael Chertoff have provoked a response from at least one insurance association.

As reported by the Beaumont Enterprise, Chertoff is quoted as saying that insurance companies need to “step it up a little bit,” in terms of their response to policyholders affected by Hurricane Ike. Chertoff is further quoted by reporter Matthew Danelo as saying, “If [insurers] are listening, I'd like to light a little bit of a fire under them to make sure they do that.” The comments were attributed to him during a news conference at a FEMA staging ground located at Ford Park, Texas on Sept. 18, 2008.

Chertoff's statements were noticed by at least one pro-insurance group, the American Insurance Association, who responded directly to Chertoff via a letter penned by the association's president, Marc Racicot. The issue raised by Racicot dealt with the ability of insurers' claim staffs to gain access to policyholders and properties — a process the government controls.”I have carefully reviewed your recent public comments regarding the insurance industry's response to Hurricane Ike and wanted to be sure you have the most thorough and recent information available to you as you continue to respond to the challenges in Texas,” said Racicot to Chertoff. “Insurers began doing their part before Hurricane Ike ever made landfall. In fact, natural catastrophe response teams started their operations as the storm was gathering strength in the Gulf.

“Since landfall, hundreds of claim handlers from all over the country have been deployed to the region,” continued Racicot. “As part of their efforts, mobile claim centers have been positioned as close to the affected areas as allowed by local authorities. As you know, access to the impacted areas remains a critical problem. Now that FEMA has opened their disaster recovery centers, I anticipate that insurers will co-locate their mobile claim centers at these nine locations — all in an effort to best serve their policyholders.

“The Texas Department of Insurance has openly acknowledged the eagerness of insurers to get into impacted areas, but underscores that the decision to allow insurers access is controlled by local authorities who have not yet allowed insurers into many areas. Please be assured that America's property/casualty insurers are doing their part to quickly process claims and help their policyholders recover in a timely manner during this difficult period.”

To read Racicot's complete letter, click here.

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Chertoff Comments Rile Insurers

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