August 26, 2011

Hurricane Irene Could Be Multi-Billion Dollar Event for Insurers

A 'significant hit' but within planning scenario for P&C insurers, reports PropertyCasualty 360

Following is an excerpt of a news article written by Chad Hemenway of AdvisorOne's sister publication, PropertyCasualty360.

Hurricane Irene is expected to be a multi-billion dollar event for the insurance industry, says Robert Hartwig, president of the Insurance Information Institute.

“It looks like Hurricane Irene, at this point, is going to be a significant hit, likely a multibillion dollar storm that is a large event, certainly for the East Coast, but well within the planning scenario for [property and casualty] insurers and re-insurers,” Hartwig says.

Alex Sosnowski, expert senior meteorologist at AccuWeather.com says Hurricane Irene could be among the “worst hurricane impacts in 50 years along the northern part of the Atlantic Seaboard.”

State-run insurers may feel a significant brunt of the insured losses, Hartwig says. The residual market in Massachusetts, for instance, could see the “largest losses they have ever seen in history.” These funds often make up for shortfalls by assessing other policyholders.

“They'll be paying on that for years,” Hartwig says.

Read the entire article here, including a list of the insurers who have written the most P&C insurance in states likely to be affected by Hurricane Irene.

Reprints Discuss this story
This is where the comments go.