A report in Jackson, Miss. by Insurance Commissioner George Dale shows that six months after Hurricane Katrina struck a devastating blow to the Gulf Coast, major insurers have made solid progress and are committed to completing the job and preparing for 2006 storms.
“We are encouraged by the findings of the report, but won’t be satisfied until every claim has been settled,” William Stander, Property Casualty Insurers Association of America regional manager, said.
PCI members write more than 54 percent of the personal lines and 38 percent of the commercial lines insurance policies in the state.
“Given the unprecedented widespread damage inflicted and unique challenges that resulted from Katrina, the insurance industry has done an admirable job in meeting the needs of policyholders,” Stander said. “Company claims adjusters have been working nonstop to close claims and help individuals and businesses begin rebuilding their lives and their life’s work.”
PCI praised Dale and Gov. Haley Barbour for their efforts to communicate with insurers, facilitate the claims settlement process, and preserve a healthy and competitive insurance market in the state.
“Commissioner Dale made his expectations very clear,” Stander explained. “And insurers have worked hard to meet them. At the same time, the commissioner and Gov. Barbour have taken the lead on a program to mediate, rather than litigate, disputes over claims.
The governor and the commissioner clearly understand the importance of a healthy insurance industry to both the recovery effort and the state’s future economic health and we are committed to working with them to accomplish these objectives.”
This past hurricane season was remarkable not only for the severity of storms but also the number of storms that made landfall. The 2005 hurricane season presented extraordinary challenges for insurers in settling claims. The industry had to contend with multiple major storms that affected the entire Gulf Region from Texas to Florida. In addition due to the extreme devastation there were unprecedented challenges presented to insurers in getting access to the hardest hit areas.
“Unlike past hurricanes where insurers went to the hardest-hit areas first, in Katrina adjusters and agents, like many homeowners, were unable to access the hardest hit areas because of the devastation,” Stander said. “Because insurers were forced to work from the outside-in, many of the remaining claims are in the hardest hit areas and will be the most difficult to resolve. Homeowners who are not satisfied have options, including the mediation process ordered by Commissioner Dale that is free-of-charge and non-binding for homeowners.”
As the Gulf Region prepares for the coming hurricane season, PCI and others are diligently working to bring important reforms to the National Flood Insurance Program. In Mississippi PCI has supported legislation that would clarify for consumers that coverage for flood damage is excluded from homeowners insurance policies and is working to ensure that there is good communication between regulators, consumers and insurers.
In addition, PCI is advocating for stronger building codes. “To ensure that Mississippi and other Gulf Coast states are better prepared for next year’s hurricane season, PCI is urging legislatures in the region including Mississippi’s to enact and enforce strong statewide building codes. Without a strong building code, many of the homes being rebuilt following Katrina’s devastation will once again be vulnerable to hurricane and flood damage,” Stander said.
Topics Catastrophe Carriers Hurricane Homeowners Mississippi Market
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