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I was talk about the insurance.
Affects of sandy disaster modeling firm -- cat has estimated -- to ten billion dollars in insured losses.
From super storms sandy that's more than Hurricane Irene is four point three billion dollar industry loss.
So -- the question is will saying the impact the insurers during -- joining us now on the phone is Meyer shields an analyst with.
Stifel Nicolaus and my.
How well prepared -- the insurance companies for a slew of claims that could -- into the billions.
I would say very well prepared the good news that I can say that about hurricanes that insurance of these patent -- to get their people -- -- because you have a couple of -- notice.
-- from an actual.
Logistical perspective very well positioned them from a financial perspective this has been up until the past few days a relatively low.
It's actually year but he in his -- -- from a financial perspective as well very well.
Opposition to handle these -- Limited and corruption.
Let's talk about some of the particular companies or of the areas or some sort of one narrow it down to a certain extent I mean when I think of insurance I think a child I think -- -- CA think of travelers.
Are there are some that have more exposure to whether it's fly there -- certain kinds of damage or certain areas.
What would should be re watching over the next week herself.
Well we think that the sort of increase is certainly there are company -- -- different geographical exposure they gonna see some companies that are more focused on.
But -- in the Atlantic or the New England region.
They're gonna have a fair amount of losses this is certainly coming in at that what's -- to be controllable level but -- -- -- -- -- evenly distributed.
From a flooding perspective Decatur remembers that most of those losses -- actually going to be insured by the federal government.
Rather than by the insurance -- so that he expected that the sort of lost there's very little impact on -- You know -- -- just looking at some of the information on insurance pricing those rates have been steadily going up over the last year.
In the wake of sandy do you expect premiums to go even higher.
I think stocks come from an insurance industry perspective and I don't -- the sound insensitive did.
Lost if not a big enough deal to change the trajectory of price thing but I think what we're seeing it in in property property reinsurance property picked up speed.
Is really stabilization that hasn't been a pretty good here and that trying to think you'd expect.
Where does a lot of storms coming -- I mean and that it seems that wouldn't you look at the -- that when you look at the trends in the meteorologist I am not however are.
I'm hearing that this is a going to be some -- her head there's still storms ahead what do you think about that.
I think if it happens you'll certainly see a different perspective stake in but unfortunately one of the laws of insurance industry.
Is that bad things have to happen before there's an adjustment the pricing strategy.
But you know there's no doubt people say -- -- -- changing does this change the strategy of insurance companies moving forward.
I think so I think you're seeing heightened level of -- -- in -- them meet their buying more reinsurance -- maybe ten years ago in recognition of the fact that if one bad thing happened source three bad things happen.
They -- take a sizable loss so they are being more cautious in terms of their aggregate exposure.
Very good thank you so much my -- was -- -- Nicholas thank you very much -- we appreciate you joining us thank you.