We dodged a bomb.
Here in New England, it always seems the greater the media coverage around weather events, the less dramatic the impact when the actual events hit. Fortunately Irene was no exception. That’s not to minimize the impact of Irene and especially the devastation in Vermont and upstate New York; reports indicate the damage far inland far exceeds what those of us on the coast experienced. While we are without power – and likely will be for another week or so – that’s a minor inconvenience in comparison.
The silver lining of Irene’s dark cloud is the impact on insurance markets. While irene’s bill won’t be large enough to turn the market harder, it’s likely to have more of an additive effect, coming as it did on top of the tornadoes, tsunami, and flooding earlier in the year. The sum of all these events will certainly help to firm up the P&C market and not just in property lines. Insurers are looking for any reason to increase rates and this latest event may well push a few more to tighten underwriting and raise premiums.
We would do well to remember we are nowhere near the end of hurricane season; Irene has relatives that may come calling this fall and they may be nastier still.
Aug
30
