Commercial Lines

Tropical Storm Katia is expected to become the Atlantic seasons second hurricane over the next 36 hours, but it not yet know what impact, if any, the storm will eventually have on the U.S. East Coast.

Hurricane Irene should not cause significant losses for commercial insurers, but it shows that the Northeast is susceptible to tropical cyclones, justifying recent rate increases in the region, says Duncan Ellis, U.S. Property Practice Leader for insurance broker Marsh.

The damage from Irene and other disasters means that property insurance premiums will likely rise across the board into 2012, says one research analyst.

Rating agency Standard & Poors says it does not expect Hurricane Irene to affect the industrys creditworthiness and it expects few, if any rating changes as a result of the storm.

Catastrophe modeler AIR Worldwide says it expects between $3 billion and $6 billion in insured losses in the U.S. from Hurricane Irene.

The storm largely spared NYC--but still caused extensive damage up and down the East Coast--and into Vermont.