Hurricane Sandy, aka “Frankenstorm”, is approaching the east coast of the United States and is expected to hit in the next few days. As Americans make preparations for the storm by stocking up on food and water or even evacuating their homes, auto insurance companies are making preparations for Hurricane Sandy as well. Reuters’ Ben Berkowitz talks about what they are doing in “Insurers prepare for impact of Hurricane Sandy.” Insurers are ready for a storm of their own once the claims start filing in. They prepare for big storms like this by prepping claims teams and sending adjusters to the locations they believe will be hit the hardest.
A spokesman for Travelers Insurance said that they have employees and other resources positioned so that their clients will get help as soon as possible after the storm hits. They are the second largest personal home, auto, and commercial insurer in Connecticut and the third largest in New York. Customers in both of those states are expected to be hit hard by Hurricane Sandy. Travelers has also had to put plans in place to keep their business running smoothly across the country since a large number of employees will be working in those two states.
Lucky for insurance companies, 2012 hasn’t been too bad of a year for financial losses. With billions of dollars of losses forecasted for Hurricane Sandy, the industry is braced to handle the claims and doesn’t expect any delay in processing because of the storm. State Farm is the leading insurer in New York and New Jersey. They said that they have catastrophe teams waiting to respond when the storm hits. Allstate has teams waiting in North Carolina, Virginia, and Pennsylvania. Private insurance companies think that the majority of their claims will be from wind damage to autos and roofs. They also worry about business losses if businesses are out of power for a prolonged time. Insurers are pleading with Americans to heed evacuation orders before it is too late to reduce some claims.