A little over six months after Hurricane Katrina made its mark as one of the worst natural disasters to hit the United States, state insurance regulators say things are returning to normal, although slowly.
The disaster has given rise to several new consumer efforts that commissioners in Louisiana and Mississippi said will help improve service and underscore the efficacy of state insurance regulation.
The latest initiative–started during the week of March 20–is a consumer callback program to make sure inquiries concerning hurricane settlements are acknowledged, according to Louisiana Insurance Commissioner James Donelon. A callback will be made to insurance consumers 21 days after an initial contact with the department, he explained.
Louisiana has also set up a mediation process to facilitate claim settlements, he added. That program has processed some 35,000 claims, Mr. Donelon reported.
Total hurricane claims to date for the state are 950,000. Telephone inquiries have averaged about 20,000 per month, for a total of approximately 100,000, he said. Of those, 5,000 have become formal complaints, Mr. Donelon said. Claims payments have totaled $10 billion for Katrina and $2 billion for Hurricane Rita, he noted.
In some ways, Louisiana policyholders were more fortunate than those in Mississippi, he said, noting that 40 percent of Louisiana's coastal area was insured for flood compared with 20 percent for Mississippi.
Mississippi Insurance Commissioner George Dale said the rebound in Katrina's aftermath is a slow process, and “we as Americans are an inpatient people.” He said inland Mississippi counties are returning to normal, but the three coastal counties are experiencing a slower rebound.
However, he added, patience is paying off, with a total of 474,324 claims filed and $8.7 billion in payments made. Between 80- and 90 percent of claims filed have been closed, he said. Mr. Dale also cited a mediation program with an 89 percent closure rate of 156 out of 176 cases.
He noted that on April 17, the governor's office will begin taking applications for federal grant money for those with no flood insurance.
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