Homeland Security Report Finds Flood Insurance Program No Evidence of Shifting Wind Claims to National
June Holmes, interim CEO for the Property Casualty Insurers Association of America (PCI), issued the following statement today in response to the Department of Homeland Security (DHS) Inspector General’s interim report to Congress that there was “no evidence that wind damages were improperly attributed to flooding” after Hurricane Katrina struck the Gulf Coast in 2005:
“We hope that the findings of the Department of Homeland Security’s Inspector General will put to rest the plethora of misstatements accusing insurers of improperly shifting wind claims to the National Flood Insurance Program (NFIP), and that we can move forward to identify the best solutions to the nation’s natural catastrophe crisis.
“The Flood Insurance Reform and Modernization Act (H.R. 3121) includes a provision to add wind coverage to the NFIP. PCI believes that this report obviates such an unchecked expansion of the flood program, and that Congress should focus on real solutions to market disruptions which acknowledge the important role the private market plays in dealing with natural catastrophes.
“We hope to see further consideration of two bills currently before Congress, the Homeowners Defense Act offered by Reps. Ron Klein and Tim Mahoney of Florida, and a natural catastrophe commission bill introduced by Sen. Christopher Dodd of Connecticut. These bills offer a better chance at a solution to our nation’s natural catastrophe issues than adding wind coverage to the federal flood program.”
PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $194 billion in annual premium, 40.1 percent of the nation’s property/casualty insurance. Member companies write 51.3 percent of the U.S. automobile insurance market, 39 percent of the homeowners market, 32.1 percent of the commercial property and liability market, and 38.7 percent of the private workers compensation market.
Source: Source: PCI | Published on August 20, 2007
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