|Targeted News Service|
Property/casualty (P/C) insurers were well-capitalized before superstorm Sandy arrived and then allocated significant resources in response to one of the costliest catastrophes in U.S. history. But the increasing frequency and severity of weather events remain a cause for concern, according to panelists who convened this week at the
U.S. insured claim payouts due to catastrophes dropped to
"The industry overall responds very well and very promptly," when natural disasters strike, said Texas Insurance Commissioner
"It [Sandy] probably also highlights the whole issue that the industry is trying to deal with, which is 'what is the new normal?' as far as level of catastrophe losses," said
"Over the last 10 years, ended 2012, the homeowners insurance business nationally made an annual after-tax profit of about four percent," stated
"For the most part, we're not seeing a lot of rating movement because most companies have managed this [Sandy's aftermath] fairly well, and been able to diversify themselves enough that it hasn't had a major impact," said
"We saw claims coming in very quickly, far greater than any other previous catastrophe that we had dealt with," said
The session's moderator mentioned that, amid all of the industry's focus on Sandy and its repercussions, policymakers continued to weigh the enactment of new laws and regulations which would likely make it harder for insurers to operate.
"The industry has proven strong and resilient, with continuing near record capital, and surplus and almost no global failures," Sampson said. "Study after study has concluded that insurance activities are not systemically risky."
TNS-LE 130119-4172453 StaffFurigay
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