Best’s Briefing: Insurers Equipped to Handle Hurricane Lane Losses
OLDWICK, N.J.--(BUSINESS WIRE)--Aug 28, 2018--A.M. Best expects that Hurricane Lane, which buffeted Hawaii, will be considered more of a flood event than a wind event, and as a result, bring a potential triggering of the National Flood Insurance Program’s reinsurance program into consideration.
A new Best’s Briefing, “Insurers Equipped to Handle Hurricane Lane Losses,” states that most A.M. Best-rated Hawaiian insurers exposed to property catastrophe risk, based on direct premiums written in Hawaii, have diverse geographic footprints and possess risk-adjusted capitalization supportive of their current ratings. Therefore, A.M. Best does not anticipate significant decreases in policyholders’ surplus at affected rated companies, or any rating actions. However, rated entities that display any material deviations from expected results potentially could be the subject of negative rating action in the form of under reviews, outlook revisions or downgrades.
The National Flood Insurance Program has approximately 60,000 policies in force, according to FEMA. Should the beleaguered U.S. flood program’s reinsurance layer pay out because of Hurricane Lane, along with other recent and prospective events, it would be the second-straight year the placement was triggered. Because of the flooding, which exceeded 50 inches in some parts of Hawaii. A.M. Best expects the storm generated comprehensive claims for auto insurers as well.
To access the full copy of this briefing, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=277468.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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CONTACT: A.M. Best
Steven DeLosa, +1 908 439 2200, ext. 5969
Bobby Skrabal, +1 908 439 2200, ext. 5792
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE
SOURCE: A.M. Best
Copyright Business Wire 2018.
PUB: 08/28/2018 03:50 PM/DISC: 08/28/2018 03:50 PM