Hurricane Katrina has affected the insurance industry dramatically. At a recent conference, several industry leaders discussed trends in the market, recruitment of new agents, the devastating effects of Katrina, and the insurance industry’s duties to policyholders in the aftermath of the hurricane. The long and short term effects of Katrina was the focus of the panel, led by CEOs of major insurers, which determined that the insurance industry must stand behind policyholders, especially those affected by Hurricane Katrina. There was agreement between most major insurance companies that the suspension of billing and cancellations was the top priority, along with paying claims promptly and fairly to those in devastated regions.
The various insurance associations, both state and national, have created a fund to help industry colleagues affected by Katrina recover from the losses they have suffered. The fund will also benefit the families of agents and brokers directly affected by the hurricane. Hurricane Katrina has devastated not only human life and property, but also the economic stability of the coastal region. Major insurance companies have suffered devastating losses as well as a result of Hurricane Katrina. The insurance industry estimates that 15 to 25 billion dollars in losses could be the price of insured losses due to the hurricane.