New Orleans Insurance

Complaints about the slow payments to victims of the hurricane on the widespread criticism that the insurance companies to its customers to enjoy pain. Critics cite the record industry profits of $ 48 billion in 2005 and $ 68 billion last year, while the policy of lower cost and more.

Insurance companies, which have traditionally heavily on their earnings by investing the premiums, until the money was forced, claims are now back to pay the insurance premium less to raise funds, it , As indicated by AM Best Company, assesses the insurer.

This trend began long before Hurricane Katrina made, but the recent period was the worst, “said J. Robert Hunter, director of insurance for the Consumer Federation of America.

Insurers say it began paring back the collection and increase in insurance rates on home, if the costs of large claims began to eat their profits, and competitors only sell insurance Self began to draw away from their most lucrative customers.

In 2005, the insurer of origin in Louisiana and other coastal regions of several billion lost because of Hurricane Katrina and other storms, “said Hartwig, the insurance trade group, as earnings increased elsewhere in the country and for other types of insurance. Last year, profits rose across the sector, because the country has not made the case of hurricanes USA.

Mr. Hartwig said that insurers were not insensitive or hungry, but that “a financially weak insurer is insolvent or not to authorize the use for anyone”.

Premiums outside hand

Numerous damage caused by storms of 2005 has increased the costs of homeowners’ insurance in the region, for those who find a policy ever. These costs are a major obstacle for the resumption.

“It is very difficult for human beings, especially the marginalized, want to return to rebuild,” said Lawrence Ponoroff, the dean of the Tulane University School of Law. “It is very difficult against institutions and the recruitment of new business models in this area.”

The increase in premiums, buying a house - or a sale - more difficult here, “said Lynda Smith Nugent, real estate was sold for 34 years. “Suddenly, your insurance is $ 2000 per year to $ 6000 per year,” said Smith. “It is right that the icing on the entire pile of ice cream and whipped umfallen.

Spick insurance rates have also discouraged owners by presenting needed rental housing market here and lead to major problems non-profit groups trying to develop housing for the poor and elderly.

Such a group, the Enterprise Community Partners, 11 projects on paper, but only a Deal. And insurance in the project is approximately $ 2100 per year per unit, nearly seven times more than it was before the storm, “said Michelle K. Whetten, director for Gulf Coast businesses. “Another problem,” she says, “is a policy increasingly ever.

James J. Donelon, the insurance commissioner of the State, said that some companies have not been written over new policies in Louisiana and the fact that many of them have been rising prices, higher copayments and coverage to cut the wind and hail. (The State is also concerned by the fact that insurers are no longer used for professional activities, he agreed to spend $ 100 million for incentives to attract them.)

Mr. Annotti insurance spokesman, said the billion dollars paid for the unexpected rise in hurricanes in recent years has prompted insurers, for the first time on how crowded coast, with expensive houses and companies.