Insurers say they are making the usual preparations for a hurricane - activating claims teams, staging adjusters near the locations most likely to be affected and generally getting ready to pay for a potentially huge volume of losses.
"We plan for weather events such as this, so we feel well prepared with resources strategically positioned to quickly assist customers who may be impacted," Travelers spokesman Matthew Bordonaro said in an early Sunday e-mail.Travelers is the third-largest insurer in New York for both personal home and auto and commercial lines of insurance, and the second-largest in Connecticut.Bordonaro said the company had also activated continuity plans for its own employees, so it can sustain operations despite having staff clustered in New York and Hartford.Had Sandy hit in 2011, it may have been more of a problem for the insurance industry, which dealt with record-breaking losses around the world last year, mostly from U.S. tornadoes and Asia-Pacific earthquakes.But in 2012, most insurers' disaster losses are down substantially, leaving them with more capacity to absorb the billions of dollars in costs some expect from Hurricane Sandy."In terms of losses, I certainly don't think it's going to be the largest loss of the last 100 years," Tom Larsen, senior vice president of Eqecat, said in an interview late Friday. "It's not an end-of-days scenario."Chubb Corp, another of the major insurers in the Northeast, said early Sunday that it has been working for days to move staff around so they are positioned to respond....MORE