In Wake of Superstorm Sandy, New York Should Protect Consumers from Reduced or Denied Claims, Take Steps to Develop Comprehensive Homeowners…
Targeted News Service |
In Wake of Superstorm Sandy, New York Should Protect Consumers from Reduced or Denied Claims, Take Steps to Develop Comprehensive Homeowners Insurance Reform
In response to
"Superstorm Sandy, like other recent catastrophe events, revealed the inadequacies of current homeowner's insurance," said
CFA also called on the
"Insurers are selling peace of mind and financial security and delivering confusing legalese and unfair exclusions. The anguish Sandy victims are experiencing when their claims are denied is a wake-up call" said
CFA urged the
*
*
* Reform caps on replacement cost.
* Require that
* Create public-private partnerships to finance loss mitigation and loss prevention. Consumers will simply not be able to afford ever-increasing insurance premiums to pay for ever-increasing catastrophe events. The only long-term solution to the problem of catastrophe insurance coveage is to harden structures so less damage results from the storms. The technology to create loss-resistant structures is available. What's missing is the ability of homeowners to finance these loss prevention investments. Insurers should be involved in partnering with homeowners to help finance these improvements with longer-term policies, such as five year policies instead of one-year policies. Public sector funds can be used to leverage insurer and other private sector loss mitigation efforts.
"The current industry approach to managing catastrophe risk is to provide less and less coverage and push more and more exposure and costs onto consumers and taxpayers," said
Contact:
TNS rd43 121201-4124584 StaffFurigay
Copyright: | (c) 2012 Targeted News Service |
Wordcount: | 774 |
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News