Robert Hartwig
Robert Hartwig
continued insurance price problems relative risk unless
Unless there is some rationalization of the price of insurance relative to the risk assumed, there will be continued problems of availability.
billion country depending far high hurricane insurance katrina losses situation
We are already at about $50 billion of insured losses from catastrophes in this country so far and that could be as high as $70 billion, depending on what Katrina does. Hurricane Wilma is a situation that is going to exacerbate what was already problematic for the insurance industry.
adjust certain exposure found issue necessary number segments united
This is not a new issue in the industry. For a number of years, insurers have found it necessary to adjust their exposure in certain catastrophe-prone segments of the United States.
collected forced lead penny possibly quite smaller
Insurers have never collected a penny in flood-insurance premiums. If they're forced to pay, it could quite possibly be destabilizing and lead to the insolvency of smaller insurers in the area.
adjustment certainly cycle expecting frequent intense next
We are certainly expecting that for the next 20 years or so we will be in a cycle of more frequent and intense storms. There's going to have to be an adjustment in the industry.
chaos complete explosions looking
We're looking at complete chaos in New Orleans, with explosions and uncontrolled fires,
billions built easily island run scenarios storm structures york
There are easily storm scenarios in New York that run to tens of billions of dollars. And structures on Long Island aren't as well built as new construction in Florida.