Superstorm Sandy’s Aftermath

By | November 19, 2012

Superstorm Sandy was one of the largest storms ever to hit the East Coast. And it’s also likely to be one of the costliest storms ever recorded in U.S. history.

We have in-depth coverage of Superstorm Sandy in this issue, with articles on Sandy’s potential impact on insurers’ surplus (page 11), the growing debate over hurricane deductibles (page 12) and business interruption coverages (page 13). In the national section, we look at what impact Sandy might have on the debt-ridden National Flood Insurance Program.

While New Jersey and New York bore the brunt of the storm, many other states also suffered big losses. Sandy reached over 1,000 miles during its peak, and the storm’s total damages are estimated to be in tens of billions of dollars.

So far, Eqecat’s industrywide insured loss estimate range, which has been revised upward, is between $10 billion and $20 billion — with the total economic damage in the range of $30 billion and $50 billion. AIR Worldwide is sticking by its original insured loss estimate of $7 billion to $15 billion. Meanwhile, Karen Clark & Co. said insured wind losses could be approximately $12 billion.

The arduous recovery effort was made even more difficult when an early winter storm hit the coastal region on Nov. 7. Many Northeast residents remained without power. In New York’s Long Island, some 130,000 residents were still without electricity as of Nov. 11, two weeks after Sandy slammed into the East Coast.

Meanwhile, insurers’ catastrophe response teams and claims adjusters are working around the clock to meet with customers. It has not been easy for claims reps, many of whom had to work while facing widespread power outages and gas shortages in Sandy-battered regions.

State Farm Insurance said it received approximately 103,900 Sandy-related claims as of Nov. 11.

“Superstorm Sandy was a very diverse storm, so we are seeing damage caused by a range of weather conditions. Many claims are from wind damage, downed trees, and power outages,” State Farm spokesperson Amy Preddy told Insurance Journal. “Our hearts go out to those affected by Superstorm Sandy. State Farm’s priority is making sure everyone is safe and taking care of customers’ needs as quickly as possible.”

At Nationwide Mutual Insurance Co., the Sandy-claims figure reached 41,430 as of Nov. 11. “Our mission remains the same — we’re here to help our members when they need us most,” spokesperson Elizabeth Stelzer said. All along the East Coast, insurers and their representatives are playing a critical role — helping their customers get back on their feet.

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Insurance Journal Magazine November 19, 2012
November 19, 2012
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