State Insurers Take a Big Hit from Ike
by: Rod Rice, January 28, 2010 3:01:36 pm
That group is the Insurance Council of Texas. It represents about 500 insurance companies that sell homeowners insurance and auto insurance in the state. The council's Mark Hannah says Ike related insurance losses totaled nearly $12-billion.
"This is by far the largest weather related catastrophe we've ever had. The one prior to that was Tropical Storm Allison which hit Houston and then prior to that was Hurricane Rita, so this one is about three times the expense of say what Hurricane Rita or Allison were."
The council says windstorm claims in the state totaled almost $10-billion, but said Hannah; all in all the industry was able to withstand the hit.
"We really only had one insurance company to go down and that can't all be due to Hurricane Ike, it already had problems."
The National Flood Insurance Program says Texans filed nearly 44-thousand flood claims due to Ike at a cost to the program of $2.2-billion.
Hannah says the insurance industry is just like the rest of us and will be better off if storms like these are few and far between.