You're watching...
Deloitte Insurance Group Director Howard Mills on the impact of Hurricane Sandy on insurers.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
You've got are right let's keep talking about this -- mammoth cost look like the just.
Will never be able to meet them see -- on track now to become one of the most expensive hurricanes in history.
The superstar and cause an estimated fifty billion dollars in economic damages and up to twenty billion.
In insured losses this.
According to the disaster modeling firm equity cat for more on the impact on -- insurance industry would -- -- Howard mills director.
And to Lloyds insurance industry group and former New York State insurance superintendent.
-- you look at that and you think oh my god how we ever gonna pay for that but -- -- saying actually that fit property casualty insurers are actually -- -- -- with a the industry's very well capitalized to twenty billion dollar -- a huge number but to put in context that's about half.
Of what Katrina was so the industry is well capitalized they can definitely handle 120 billion dollars in in -- losses what is your intro indicated.
The twenty billion dollars of insured losses is only a piece of it right total economic damage.
Is much more and and someone that unfortunately much of that will be borne by the taxpayer.
Break so that's -- -- so the taxpayer you're saying it's gonna pick up the bill to repair old anything federal.
Things like that right to explain that the public infrastructure of the bridges the tunnels -- -- getting that path tunnels back company MTA all of those types of things.
That is a governmental obligation it's not insured.
So that is ultimately going to be borne by the federal the state governments.
I'm sure there will probably see moves in congress by the congressional leadership of the East Coast.
To do more.
Another thing back to the insured losses we talk but the twenty billion dollars of insured losses most of that is.
Personal property and of course businesses all the commercial insurance that's obligated the business interruption.
But for those folks who had flood insurance to the National Flood Insurance Program Vienna fight.
You know course flood is not covered under the standard homeowners policy -- the needed flood insurance from the federal government.
That is been artificially subsidized Tracy for years -- rates are artificially low the federal government's been been doing that.
And the National Flood Insurance Program is now reaching its borrowing ceiling sold there will have to be.
Authorization of additional borrowing.
And there it probably be moved to finally raise the rates to get the war actually to reflect the MySpace he'll risk in these people are gonna get -- -- -- -- Howard and other personal at a time thank you so much for being here about.
All -- taxpayer shoulders at the end of the day.
--
