Texas Insurers Say They Learned Lessons from Hurricane Katrina

Texas insurers were thankful that Hurricane Katrina avoided the state’s coastal property, but the storm provided the industry valuable lessons in dealing with future catastrophes. Hurricane Katrina forced companies to focus on improving communications, access and manpower.

Hundreds of insurance adjusters began migrating toward the affected areas in Louisiana, Mississippi, Alabama and Florida after Hurricane Katrina made landfall. Most were waist deep in adjusting claims for businesses and homeowners, when Hurricane Rita struck Texas and Louisiana one month later.

“Companies learned that they better have a sufficient number of adjusters standing by no matter how many hurricanes hit or where,” said Mark Hanna, a spokesman for the Insurance Council of Texas. “Many insurers have begun cross-training employees so that they can fill in and offer assistance wherever they might be needed.”

The Texas Department of Insurance offers emergency adjuster licenses and has opened the door for adjusters outside Texas to come in and help with catastrophes.

TDI agents license director Matt Ray said, “We don’t want to be in the way of getting these people out there to assist Texas policyholders. That’s why, during a catastrophe, TDI allows non-resident insurance adjusters to work in Texas without obtaining a Texas license, including experienced adjusters whose states don’t license adjusters.”

Ray says he sees emergency licensed adjusters as a supplement to those already in place.

“The individual seeking the emergency adjuster license isn’t required to have previous adjusting experience but must be sponsored by a licensed adjuster or an insurance company,” said Ray. “The emergency license is given first priority in processing and can be good for up to 180 days.”

Communications is a key component in dealing with any catastrophe. Most cell phones were useless after both Hurricanes Katrina and Rita. Insurers say they will rely more on satellite phones in the future.

“The Internet became our most important tool as it was more reliable than phone,” said Lisa Weiland, regional president of Travelers South Central Region. “Immediately after the storm, we built a Web page dedicated to catastrophe communication where agents could find important information and contact us regarding their temporary location and operating status. This site allowed us to reach out to our agents and help them connect to their customers as soon as possible.”

Many insurance companies and relief agencies have already designated locations outside coastal communities that can serve as distribution points in providing information, supplies and shelter.

“The damage from Hurricane Katrina and Rita completely cut off help to many areas,” said James Langford, assistant vice president of Texas Farm Bureau Insurance Companies. “We’re looking at placing command centers away from the coast, but close enough to allow us to fulfill our job responsibilities in putting people back in their homes and getting them on with their lives.”

Source: ICT