The hurricanes of 2005 and events in the storm's aftermath were the top three insurance stories of the year, according to the Property Casualty Insurers Association of America.
The number one story was the storms themselves, which resulted in a payout of nearly $50 billion to policyholders and 1.8 million claims. The lawsuits over insurer claim denials based on flood exclusions and the clamor for tougher building codes made the next two stories on the list.
The other events the PCI cited were:
o Legislative action to extend the Terrorism Risk Insurance Act.
o Class action litigation reforms, which PCI said will help put an end to "forum shopping."
o Regulatory action to change the rules for agent and broker compensation and finite reinsurance following investigations by New York Attorney General Eliot Spitzer and others that revealed irregularities in those areas.
o Auto insurance reform for Massachusetts, which after continuing industry demands for change may happen next year.
o Recovery of the California workers' compensation market following a series of reforms enacted in 2003 and 2004. PCI said the state's once wobbly comp market is now returning to health.
o The Illinois Supreme Court overturning of the $1.8 billion verdict against State Farm for its use of after-market parts for auto collision repairs. PCI said the case sent a clear message that standards of state law must be met to proceed with a class action lawsuit.
o The failure of any state to pass legislation banning insurers' use of consumer credit background to evaluate risks. PCI also noted what it said was a favorable report on credit scoring by the Texas Department of Insurance.
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