Insurers Might Stand to Gain From Charley

[papau]

19 dead, 4,000 National Guardsmen activated, 25 counties declared federal disaster areas, 21 shelters with space for 2,500 people, eight Red Cross mobile kitchens, 2,000 insurance adjusters on the ground, 22,000 applications for FEMA relief filed and an estimated 120,000 Floridians out of work.
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http://www.latimes.com/business/la-fi-insure17aug17.story
Insurers Might Stand to Gain From Charley
The Florida disaster could slow down a cost-cutting trend but isn't expected to affect California rates.
By E. Scott Reckard
Times Staff Writer

August 17, 2004

It's something the industry would deny, but Hurricane Charley may well be a financial boon for insurers.

Damage estimates for the big Florida storm were running from $5 billion to $14 billion Monday, which would make it the costliest U.S. natural disaster since Hurricane Andrew in 1992 and the 1994 Northridge earthquake.

But stock prices rose for all 10 members of an index of property insurers. Experts said the industry might in fact benefit from the disaster, because it would allow companies to slow down a recent cost-cutting trend.

"Bad news is good news for the insurers as long as they have enough capital to stay in business," said Kevin Callahan, who helps manage $1.1 billion at Boston's Century Capital Management, which owns stock in Allstate Corp., Chubb Corp. and American International Group Inc. "And for the industry in general, capital levels are terrific right now."<snip>

Citing experiences in California and Texas, consumer groups predicted Florida policyholders would be unpleasantly surprised by how many items insurers have excluded from coverage in recent years, especially water damage and mold. <snip>

Carriers set their rates high enough to provide reserves for big storm losses every 10 years, "and it's been about 12 years with no major hurricane" until Charley, Lotane said.

In addition, insurers and the state worked out coverage adjustments that limited the exposure of private companies.<snip>

[Keilwerth41]

1. Insurers give to Bush!

Open Secrets Insurance Industry

Further proof that, as Howard Dean has said, these natural disasters always have a way of helping Bush. With satellite technology developed by the Pentagon that can change weather or at least alter the course of weather systems, there can be no doubt that Bush could have and probably did authorize the use of this technology to change the course of the hurricane to benefit his donors.

[Swede]

3. Tinfoil hat time.

[iamjoy]

4. That's Going A Little Far

I don't think we can alter the course of a hurricane. Curious though that it seemed to turn from Tampa with Macdill AFB (home of Iraqi command ops) at the last minute.

But, many local weather forcasters never changed from the track that was out Wednesday that showed the storm taking pretty much the path it did.

[tom_paine]

5. Whoa, dude! The Evil Government Weather Control Machine!

:tinfoilhat: :tinfoilhat:

Now, we ARE in the grips of Kinder and Genlter nazis who use Hitler's Propaganda Playbook freely.

They DO murder, defraud, pillage, and lie like Soviets.

But I don't think they control the weather.

:tinfoilhat:

[papau]

6. LOL :-)

:-)

[Ripley]

7. Why are you spamming this nonsense?

Trying to see how many gullibles there are here? Funny. Not.

[iamjoy]

2. And Again, The Poor Get Screwed

many policies carry a 2% hurricane deductible.
This means if your house - appraised for insurance purposes at $120,000 - is demolished, you are responsible for the first $$2,400. Now this may not sound like a lot, but for people living paycheck to paycheck, it is. Consider too not all policies have "replacement value" and building costs in Florida have simply skyrocketed (even before this storm.) Some people are going to have a tough time rebuilding. Supply and demand is going to make it harder on the poor as the wealthy scramble to have their winter homes rebuilt before it turns cold up north.

[Kolesar]

8. Now might be a good time to cancel my automobile collision insurance

Put the squeeze on the insurance company. My car is only worth about $9000 now.