Tuesday, December 5, 2006

Insurance ... revisited

More on NOLA from our pal Scout Prime:

That's right, the Corps of Engineers is taking a "strategic pause" between essentially completing repair work to broken levees and "strengthening flood protection in New Orleans" according to the NYT


Seems the money's tight for the Corps of Engineers (no shit, it's all going to Iraq) and they estimate the city to be at risk until 2010. I posit that if they drag their feet so long, there won't be a NOLA by then. Scout gets to the crux of the biscuit:

... How many more will follow Travelers Ins. out of the area? ...

We'll know in the next few weeks. The big boys will follow Travelers first, once their legal departments determine they won't be answering lawsuits for the next 10 years. "Exposure" is the operative word in the insurance industry and the lowest exposure is what's best for the bottom line. Premiums collected vs. claims paid and all that. Expect the auto insurers to jump also, when they get finished tallying up their claims for all the vehicles destroyed and adjust their reserves. My gut feeling is the government will have to put a federal insurance system in place resembling the 'flood insurance' program they already have. That won't happen until next summer at the earliest.

An all around shitty situation down there. Great thanks to Scout for keeping this in the forefront.

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