Reported insured losses from Hurricanes Laura and Delta together reached more than $ 5 billion on Nov. 20, the state insurance department said.
According to data from the Louisiana Department of Insurance, more than 236,938 claims had been reported for the two hurricanes that hit the state earlier this year on Nov. 20. Laura devastated southwest Louisiana in August as a severe Category 4 hurricane, and Delta followed with a second strike in the same region in October as a Category 2 storm.
The claim data from the two storms was presented at a joint meeting of the Louisiana House and Senate insurance committees on Dec. 16. The information comes from calls from the insurance department to insurers for claims data related to Hurricane Laura and Hurricane Delta.
Louisiana was hit this year by two tropical storms and three hurricanes that caused an estimated $ 14 billion in damage across the state. Despite record storms, the real estate insurance market is significantly healthier and more stable than after Hurricanes Katrina and Rita in 2005, the LDI said. While rates are expected to increase, the LDI does not expect a significant shrinkage in coverage availability.
In the Dec. 16 joint meeting of the insurance commission, lawmakers criticized the insurance industry's handling of claims from Hurricanes Laura and Delta, describing slow responses, low damage estimates, and drones used to assess destruction rather than humans . The high turnover and inexperience of insurance experts were among the problems mentioned at the hearing.
Insurance company representatives opposed the criticism, citing problems that arise after catastrophic events when insurers are inundated with an overwhelming number of claims in a short period of time.
The LDI reported that by mid-December, more than 700 insurance complaints had been received related to the record-breaking 2020 hurricane season. According to the department, more than 450 have been resolved.
The tables below show a snapshot of the claims reported for the two storms, by industry.
Was this article valuable?
Here are more articles you might like.
The most important insurance news, delivered to your inbox every working day.
Receive the trusted newsletter from the insurance industry