Trickle Down Rate Increases From Sandy
By Doreen Hemlock Staff writer, Sun Sentinel | |
McClatchy-Tribune Information Services |
Initial estimates put insurance exposure in the Northeast at more than
Reinsurance makes up as much as 40 percent of premiums for some small insurers in
Some agents who sell insurance expect fallout.
"I'm sure there will be a trickle-down effect on reinsurance" in
That could tick up property insurance rates in
But other industry leaders predict little or no effect for reinsurance and
"Perhaps this will open a discussion about what's fair in flood coverage. It might resonate now that it's not unique to
Sandy's impact depends too on the way insurance companies manage claims. Too often, companies end up paying big bucks on lawyers and adjusters to trim payouts on claims that they consider inflated, said
"There must be transparency in claims, and there's no need for litigation in most cases," Stephens said. He suggests online auction bidding by contractors on repair work to help cut costs on claims.
Insurance experts say it will take weeks more to tally Sandy's claims, losses for companies and the effect on reinsurance. Until then, the debate on local consequences is sure to persist..
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