Delaware Business Update by CNC Insurance Insurance Associates Inc. "Sandy And The Insurance Industry One Year Later" 10-29-2013

As a professional in the insurance business I wanted to comment about the one year anniversary of hurricane Sandy that hit the NJ and NY shores. I wanted to see how the insurance industry has handled the 60 billion dollars worth of damage. The result is not looking to good for the industry. I have read industry articles that 80 to 90 % of the claims have been paid but most of the claimants are not real happy with the industry. Also the Federal Flood program still has many claims that have yet to be resolved which adds to the public disapproval. So how is it that the insurance industry which has settled the majority of claims still is seen as the bad guys.  My take after spending over 25 years in the industry, is the process of the insurance industry is problematic. The process of adjusting insurance claims can be very difficult and usually occurs  during a highly emotional time. The process of selling and buying insurance has given the illusion that insurance is a commodity, which is discovered as being far from the truth after a claim. The process of pricing and setting rates for insurance policies can be frustrating because of audits, endorsements, and underwriting. The process creates so much friction that when it is time for the industry to do their job they are already in a public perception hole.
 We need the insurance industry even with all it's imperfections. Insurance is what keeps the economy and lives going. If the industry can reduce the friction during the process then maybe their reputation can improve. One thing is for sure, storms will continue to happen. The insurance industry will have plenty of opportunities to get better for the policyholders they serve. Until next time be careful out there and know your risks.
By G. Kevin Nemith President of CNC Insurance Assoc. Inc.
Serving DE, PA, MD, VA, and NJ.
www.cncinsurance.com
www.bizinsurancetv.org

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