In Katrina’s Wake

As this issue of Insurance Journal goes to print, southeast Louisiana and southwest Mississippi are struggling with the aftermath of Hurricane Katrina. Our deepest empathy lies with those whose lives have been devastated by the murderous storm that swept onshore between New Orleans and Biloxi, Miss., Aug. 29, 2005.

The day after Katrina left her wreckage, hundreds of people were unaccounted for and many were thought to be dead. Thousands remained stranded from their homes, not knowing what exactly, if anything, was left of those homes.

In New Orleans, press accounts the day after the storm reported worsening conditions as floodwaters continued to rise and martial law was imposed in at least two parishes–Jefferson and Plaquemines.
“The devastation is greater than our worst fears,” Louisiana Gov. Kathleen Blanco said in a news conference. Mississippi Gov. Haley Barbour acknowledged a tremendous loss of life in his state. “We really don’t know how much,” he remarked on Aug. 30. “There are credible accounts of 50 to 80 [dead] in Harrison County. Those are not confirmed, but they’re credible.”

Also on Aug. 30, the Louisiana Department of Insurance released a report stating that preliminary estimates by one hurricane modeling company suggested insured damages from Hurricane Katrina could reach as high as $19 billion in Louisiana alone. Total insured losses nationwide were estimated to be as high as $26 billion. While cautioning that these very early estimates would be revised, Louisiana Commissioner of Insurance Robert Wooley said more than half of the losses are expected to be for residential properties covered by homeowners insurance.

The insurance industry will bear the brunt of covering the cost of the clean up and repair after this traumatic event. The day after the storm, the Insurance Information Institute released a long list of insurer toll-free hotlines for assisting storm victims (page 10).

And the people in the insurance industry are sure to, as they always do in times of great crisis, help out in any and all ways that they possibly can. Just as the industry came together after the events of Sept. 11, 2001, after the four hurricanes mangled Florida and the Southeast in Fall 2004, and after the devastating tsunami struck in the Indian Ocean last December, the insurance industry and the individuals who comprise it will answer, generously, the call for help.