Also in this playlist...
This transcript is automatically generated
Anna Howard mills -- chief advisor for the insurance industry is also the corporate superintendent of the New York State insurance department I was looking at.
Some of the insurance names just a moment ago and then mixed trading on them.
Quickly do insurers.
Get on the ground to start assessing what needs to be paid out and on the scale of really a scale of one to ten -- -- earthquakes Kelvin scale of one to ten.
-- does today's event register for the major insurance companies.
Well look the first answer your question is that the the industry -- -- very quickly the industry is very good at rapid response.
And of course this is why the insurance industry exist have to pay claims where they need be paid.
And I expect that they are already out there and doing a great job at that.
Initial analysis than the initial reports -- -- Indicate that this is -- pretty minor -- There does seem to be some damage in DC I have not personally heard of any in New York I hope that that's correct information.
But I they certainly in terms of you know recent events this does appear to be -- short losses prospective eight -- -- Europe.
Well that is -- I mean certainly we're in the middle of hurricane season as he's an excuse me is beginning you got Irene has bearing down on the East Coast and more fun news for the East Coast and then you've also got we're we're just coming off a really rough spring.
For the insurance companies between tornadoes gonna go back to Joplin.
For a moment.
And then again we don't know what hurricane seasons it'll look like correlates a little ominous right now from the forecasting we're saying how -- -- they prepared and what do you think about financial.
-- losses for these companies as we move forward.
By the industry's very well prepared actually the industry had a lot of capital reserves are very very healthy.
And as you point now although there have been some wind storms and tornadoes in the mid -- The industry is very well capitalized.
And is in a strong position to deal with.
With this issue wouldn't and certainly hurricane Irene and and what will almost certainly be unfortunately -- more significant events.
Are still possible with hurricane -- and still with several once they -- but the industry is very well capitalized been very good shape.
You know let me ask you this day as we move away and we wouldn't that -- is -- discussing the five point eight magnitude quake that hit.
-- today 87 miles southwest DC.
Certainly could be a record.
-- for the DC area we're looking for some type of of cents.
Of damage across the northeast corridor besides the travel disruptions.
Do we do kind of move forward now and talk about what's happening later on this week and that is the fact that Irene could be so the models saying they Irene is gonna hit Long Island.
And it's gonna it's gonna head even for the -- than that what are you hearing.
I will -- -- it's still too early to tell but certainly that that word is caution and people should be very cognizant.
Of Irene -- they should be checking in.
The Long Island is at great exposure or hurricane.
And you know hopefully Irene is not going to be the one.
But you know one thing that you know there's a kind of a good.
The nexus between this -- today would be earthquake and hurricane Irene coming up and that is that many people -- northeast.
Kinda forget you know they kind of think that these types of things hurricanes -- of Florida and earthquakes happen in California.
When in fact the northeast has had very major hurricanes in the past -- 1938.
There was a storm called the Long Island expressed that if it were to hit New York today with the same strength.
The saint -- it would be potentially 800 billion dollar back.
And would result in severe damages -- and certainly a loss of life so people do need to be prepared for hurricanes.
And this but they point out even earthquakes here in the northeast.
You know as I look back in my head over the last ten years in particular all the hurricanes that we have had a mean Katrina on down.
In a curious -- the industry has changed -- -- they do in short those that are in.
High flood zones that are in the areas that are susceptible I'm thinking Florida in particular along the Louisiana coast areas that are always acceptable -- -- susceptible excuse me to.
A has the industry changed in the last year to two years how to value -- risk.
When it comes to these homeowners as it changed how or if that will cover.
Some of these homeowners but as a member of five years ago a lot of controversy about insurance companies not willing to ensure.
People there were in these high risk areas again like the Gulf Coast.
Well many companies have done a very responsible thing in that they have to look at their concentration in other words.
If any one company has a great deal of exposure in a confined area.
They tried to to spread that risk -- -- that's the responsible thing to do we don't shareholders need to know that they're doing that.
The good news is that the very robust market so there's plenty of capacity there are other companies that will pick up anybody that may have been dislocated.
Because of one company -- concentration so there is adequate coverage available.
For people and in terms of coverage that is something that the industry has been trying to get that message out.
There really is a personal responsibility issue here people need to understand that the standard homeowners policy does not cover lot.
And it's not insurance companies not paying it's the fact that you know the contract would never call poor people need to get flood insurance that's offered to the government.
I had the I'm sure a lot of current program unsure how are a lot of people in the New York area to their thinking of themselves I don't earthquake insurance them -- -- asking that exact question.
And they're gonna be on the phone to their agents this afternoon to see if that indeed is the case and hopefully we're not gonna.
C any more damage -- -- looks likely bus guarded about for the most part here long -- 'cause Howard mills thank you very much for joining us again the insurance companies.
Those are stocks that we're always watching a during events like this in times like this.
Obviously as you watch another a natural disaster that is as hitting the United States has -- been.
Filter by section