Editor’s Note: There’s a Lot to Do in Katrina’s Wake

The aftermath of Hurricane Katrina’s crushing blow to Louisiana and Mississippi makes one wonder, how long it will take for everything to get back to normal, and will it?

Last week, I talked to several insurance agency owners in Mississippi and Louisiana. Those not in the direct path of Hurricane Katrina seemed to fare well, but many agents in the direct path were totally wiped out!

Several Mississippi agents, Scott Gray, at Insurance Solutions of Mississippi Inc., in Meridian, and Richard W. Davis at Terral Insurance LLC in Quitman had a lot of claims, but said nothing as bad as their neighbors to the south. In Hattiesburg, Gray Montgomery at SouthGroup Insurance Services, said the progress that has been made is “unbelievable,” and said not to believe everything you see on television.

Reports directly from New Orleans were dismal. Anderson Baker, president of Gillis, Ellis and Baker Insurance, with offices across the street from the Superdome, evacuated and set up offices in an emergency recovery mobile unit in Baton Rogue, La.

Baker hoped New Orleans would rebuild-BUT was concerned about his fellow agents in metro-New Orleans, many of whom he suspected did not have contingency plans and were totally wiped out.

Baker’s service people were up-and-running and taking claims soon because GEB had a contract with Agility Recovery Solutions and within a few days Agility set him up with everything he needed, including the mobile unit.

Bob Boyd, Agility’s president and CEO, cited statistics that 70 percent of the businesses in the U.S. do not have a backup recovery plan, and of those, only 2 percent stay in business after such a catastrophe hits!

Boyd cited a critical factor after a business ceases operation: the owner only has about 30 days to get back up and running-if this is not accomplished, his customers go elsewhere.

Baker’s worry, therefore, was not just about the reestablishment of New Orleans, but the livelihood of area insurance agencies–a real concern.

At least two alternatives are now being considered for the future: The Florida Association of Insurance Agents said it is studying ‘another avenue,’ similar to the National Flood Insurance Program, to cover hurricane wind damage in Florida; and two lawmakers, Sen. Bill Nelson (D-Fla.) and U.S. Rep. Mark Foley (R-Fla.), announced plans to push a national catastrophe fund to enable insurance companies to establish an emergency fund for future catastrophes.

Suggestions and solutions for future catastrophes are fine, but it’s urgent right now to focus on the job at hand, it’s urgent to rescue agencies that did not have a recovery plan in place and try to make sure they get up and running and back into business and that policyholders who have lost everything are compensated so they can get on with their lives.