OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode, Steven DeLosa, associate analyst, and Bobby Skrabal, financial analyst, both of A.M. Best, said the insurance impact following Hurricane Lane mostly will be property and flooding claims in Hawaii, although relatively few Hawaii homeowners have flood insurance from the National Flood Insurance Program. Click on http://www.ambest.com/v.asp?v=hawaii818 to view the entire program.
DeLosa spoke about how insurers appear to have avoided major losses from the recent storm activity.
“Hurricane Lane was more of a rain event than a wind event,” said DeLosa. “Insurers should expect mostly flood losses, which will impact homes and possibly some automobile coverage. However, most private insurers do not offer flood insurance, and those that do participate in the Write Your Own Program, are reinsured by the National Flood Insurance Program (NFIP).”
Skrabal highlighted what impact Hurricane Lane will have on companies rated by A.M. Best.
“Some A.M. Best-rated companies had significant exposure on a gross basis; however, after reinsurance their model losses are within a manageable level of their policyholder surplus.… Although losses generated from the hurricane may be an earnings event for some insurers that are more concentrated in Hawaii, we do not expect it to be a capital event for any of the insurers A.M. Best rates,” he said.
To access a copy of this briefing, titled, “Insurers Equipped to Handle Hurricane Lane Losses,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=277468.
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