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Flood coverage and yet to get a thirty days before the event actually happened so there's a waiting period and that kind of thing.
Greece is the question.
National Flood Insurance Program obviously a federal program across the states we have.
All kinds of state insurance -- back insurance programs for folks who -- in high risk areas.
I wanna talk field a little bit about Bob because it's one of those things you see in the state of Florida for example were almost everybody seems to be on the state program.
But there are lots of problems with it what's going on here.
Well it's not politically popular to allow higher rates to be charged along the coasts and in Florida the state of Florida has itself become the largest insurance state one point three million homeowners.
Have a policy with the state there.
And it became a big political issue number of years ago the governor in that -- basically said we don't care how many storms that the state of Florida insurers are not going to be allowed to charge a premium that actually reflects the risk.
Consequently insurers pulled back from the state the only alternative was to be insured with the state itself.
And we'll be hold the state run insurer went broke twice.
And people in the state of Florida now are paying what amounts to a tax for ten years even on policies like -- auto insurance policy to make up for those deficits.
So I -- be a woman who lives in Orlando.
But because I have a -- -- insured I'm paying for part of those -- Your your might be paying for the cost of a millionaire's.
Condo in Miami Beach as a retired grandmother.
In in in northern Florida yes that's ridiculous I mean how fair is that it's not fair at all and the new governor is looking at reforming the system a bit.
At the end of the day was very politically popular.
But it also risks the solvency of the state of Florida.
Let's talk a little bit about how the.
This particular storm stacks up with other storms actually have a full -- the kind of describe this the storm could end up being the tenth biggest storm in terms of insured losses.
You know it's going to be two to three billion insured losses as one estimate I've seen maybe as much as seven billion when you count and losses that are not insured.
What's your feel for the dispensaries -- a big storm.
For your customers.
Well certainly been in northeast it was a big storm for the northeast and we are you seeing a lot of rate pressure.
But it terrible winter this past year with a lot of -- back up claims -- -- -- tornadoes go through Massachusetts.
And now we get hit by.
The hurricane and so I know the industry in northeast where properties standpoint is are you crying uncle and this is going -- add to it.
Bob when you look at this -- you have this national perspective it had been around a long time covering these things how does that stack up it's it's actually walls very important people here in the northeast at compared people what's happened this year it's a it's a relatively small event.
I sort of cover these things on a global basis and we think about Japan.
And when we think about the earthquake in New Zealand when we think about the tornadoes that occurred in Alabama and Missouri in fact I was actually supposed to be in Joplin Missouri today.
And actually presenting a check to the mayor of Joplin tomorrow I couldn't get their -- somebody in the midwest are doing that for me.
Those events those tornadoes this year -- sixteen billion dollars worth of insured losses it's truly amazing year so far.
Which raises the question is the insurance industry -- -- pick up the tab.
For this for this to back -- for northerners.
-- absolutely to the extent that the policies cover the wind damage and so forth -- the industry entered 2011 with record claims paying capital.
On a global basis and -- the industry is very strong solvent secure.
And -- -- all the uncertainty in the stock market this day and age and nobody have to worry about whether claims going to be paid but -- haven't they aria paid out claims equivalent to.
All of last year's clients twice over almost and in fact when we add hurricane Irene into the mix.
We're up about twenty to 23 billion dollars in -- catastrophe losses that's more than double last year approaching triple.
But you know what it's only the seventh most expensive year ever at this point there are six years ahead of it.
Are a lot to think about lots Sheila thanks Bob Spencer for both of you coming in today and I know it's a big issue for both of you so we really --
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