BLOOMINGTON -- Hurricane Katrina has already resulted in more insurance claims than any storm of 2004, and it's still early. State Farm Insurance Cos. Friday reported 75,000 homeowner claims and 24,058 auto claims in the four-state region slammed by Katrina.
"No question those numbers will continue to rise as the days roll by," said spokesman Fraser Engerman, as State Farm employees across the country fielded hundreds of claims calls each hour.
"No question those numbers will continue to rise as the days roll by," said spokesman Fraser Engerman, as State Farm employees across the country fielded hundreds of claims calls each hour.
I was an insurance adjuster for 5 years.
The number of claims and total exposure for SF is pretty much irrelevant unless they cant cover the reserves. Trust me, SF is a monster and they do have the cash to cover the claims. They will just raise rates on the other policy holders and esp. hit the future policy holders in the areas with the biggest payouts to recover.
The guys that are going to get hurt bad are the reinsurers. The Re industry has tremendous exposure to these claims, and don't have as much ability to spread the risk and pass it on to future shareholders. There might be some bk's in the Re business after this. Those are the guys you want to short.
The number of claims and total exposure for SF is pretty much irrelevant unless they cant cover the reserves. Trust me, SF is a monster and they do have the cash to cover the claims. They will just raise rates on the other policy holders and esp. hit the future policy holders in the areas with the biggest payouts to recover.
The guys that are going to get hurt bad are the reinsurers. The Re industry has tremendous exposure to these claims, and don't have as much ability to spread the risk and pass it on to future shareholders. There might be some bk's in the Re business after this. Those are the guys you want to short.
