2004 Hurricane Totals $22 Billion - Insurers Concerned By 2005 Potential

[hatrack]

NEW YORK - Hurricanes could cost insurers "above average" losses in 2005, after an unprecedented number of such storms in 2004 made it the industry's costliest year ever, EQECAT Inc., a consulting firm that tracks natural disaster costs, said Wednesday.

"Although the current season might not be as severe and unusual as the 2004 season, the potential for large losses in 2005 is likely to be troubling to insurers and reinsurers, which will have to cover the potential hurricane damage claims," said Tom Larsen, senior vice president of EQECAT.

Last year, total insured losses in the United States topped $22 billion after six hurricanes made landfall, causing 59 deaths, according to the Insurance Information Institute.

EQECAT, which has 50 years of hurricane data, said there is more than a 1-in-3 chance of large hurricane catastrophe losses in the United States in the current season. The consulting firm's outlook is based on current forecasts by the National Hurricane Center (NHC) which has suggested 2005 is likely to be an "above average" year."

EDIT

http://www.planetark.com/dailynewsstory.cfm/newsid/31258/story.htm

[Liberal Veteran]

1. Those poor embattled insurance companies!

My heart just bleeds for their losses! :eyes:

[Boomer]

2. Unfortunately your wallet is going to bleed, too

We'll all end up paying for their losses through raised insurance premiums around the country.

[Nihil]

3. I wish I could run a casino like that ...

... where you can charge the punters to bet on all sorts of things,
usually winning (thus keeping the money to spend on yourself) but on
the occasions where you lose, you simply organise a whip-round from
all the people in the building (so that you can still spend the same
amount on yourself)!

I'm in the wrong business ...

[Coastie for Truth]

4. Political junkie comments

Insurance companies always (ALWAYS) "Privatize" profit and "Socialize" Risk.

In CA - after Northridge and Loma Prieta - the private carrier moved out of earthquake en masse and practically simultaneously. Just like flood insurance, just like tornado insurance (in some states), just like medical malpractice insurance (in some states), just like aircraft "hull insurance" (partially after 9/11), and Price-Anderson in the nuclear industry.

It is irrelevant whether the losses are investment loses or underwriting losses. --"Privatize" profit and "Socialize" Risk.

[Coastie for Truth]

5. Volunteer Emergency Responder Comments

It's going to be worse this year - because while we have the Red Cross and the Salvation Army and and the Southern Baptists Mass Feeding etc.---

15% of fire fighters, police, and public employee paramedics are Reservists and Guardsmen ....., plus the Guard is mobilized for military misadventures in Iraq. That's the paid inner corps around which the Red Cross and the Salvation Army and and the Southern Baptists Mass Feeding and FEMA mobilize. So, the damage mitigation capability will again be seriously compromised.

(For last summer's hurricanes, Florida had to pay other states to borrow their State Guard units --and the Red Cross and Salvation Army were scraping their more geriatric volunteers -- I was there and I am safely "semi"-retires, not a young kid anymore).

[phantom power]

6. This national-guard thing is going to bite us.

Our ability to respond to a domestic disaster is crippled. Earthquakes, hurricanes, bird-flu, it doesn't really matter. Anything big enough to swamp the local authorities usually requires the national guard, and they aren't available.

[Coastie for Truth]

7. When the NGO Emergency Responders

Like the Red Cross, Salvation Army, Southern Baptist Mass feeding, Coast Guard Auxiliary, Civil Air Patrol and CERT/Citizens' Corps are calling up the geriatrics at the bottom of the volunteer barrel (like me) - we got problems.

[Throckmorton]

8. I live 500 feet from long island sound,

Since 1994 my homeowners insurance has gone for $300 per year to over $700 dollars per year, in addition to that, my wind damage coverage now has a $5000 deductable.

[Coastie for Truth]

9. I live between the San Andreas and Hayward/Calaveras Faults

and my Earthquake Insurance (California Earthquake Authority) is more then my Condo "Homeowners" and "Peronal Liability Umbrella" combined.

The Earthquake Insurance has a big deductible - I basically buy it for the "Temporary Lodging" coverage - live in a post-Loma Prieta building so I think will survive structurally intact abd inhabitable "shortly" after the shaking stops. But I do expect to have clean up damages - and to be without electricity or water (including sewage) for a while.