Editor’s Note: Hurricane Katrina, a year later, another perspective

The Midwest is not affected by hurricanes or hurricane seasons because obviously our only coastal regions involve the Great Lakes, not oceans. The central region of this country does have its own natural disasters in the form of windstorms, deadly tornadoes and destructive flooding problems.

Recently in Southern Minnesota, tornadoes and hail struck several towns killing one man, damaging cars and tearing roofs off at least a dozen homes. And, in Illinois after tornadoes hit southern Illinois in Jefferson, Washington, St. Clair, Madison and Clinton counties, the governor declared the counties disaster areas. The estimated cost for public assistance alone was $1.1 million in St. Clair County and $3.6 million in Madison County.

Yet, as we observe the first anniversary of Hurricane Katrina, it is clear that a tremdous amount of work and re-building remain and claims settlements are still in process.

In spite of Katrina claims settlement battles, such as the one Bloomington, Ill.-based State Farm has faced in recent days, the news is not all bad.

In Louisiana, insurers have settled 658,700 homeowner’s claims or 94.8 percent of expected homeowner’s claims from Hurricane Katrina, totaling $10.3 billion, according to the Insurance Information Institute (I.I.I.) in New York. In Mississippi, 334,800 or 94.3 percent of expected homeowner’s claims, totaling $5.2 billion, have been settled. In fact some 99 percent of 305,000 claims from damaged vehicles, totaling $2 billion, have been settled in both states.

A separate analysis performed by the Property and Casualty Insurers Association of America shows that in spite of a range of obstacles to the rebuilding process, the influx of insurance claims payments is contributing significantly to the recovery in the region. While significant problems persist—including severe damage to public infrastructure and reduced population continue to present challenges—the billions of dollars in claims paid to date are helping fuel an increase in residential building. Permits have risen by 4 percent in Louisiana and 32 percent in Mississippi, compared to a 4 percent decline nationally in the same period. A new influx of federal aid—totaling $107 billion—should contribute to further progress.

In addition, a new poll conducted by IPSOS Public Affairs also found 89 percent of homeowners in Louisiana and 93 percent in Mississippi are satisfied with their insurance company. The survey reported that four in five people (82 percent in Louisiana and 80 percent in Mississippi) who filed a hurricane-related claim are satisfied with the way it was managed by their insurer. While satisfaction numbers are slightly higher inland, most residents in the hardest-hit coastal areas describe themselves satisfied with the way their claim was handled, the I.I.I. said.

The message here is clear. Better public relations work is needed to get the word out to the general public that the industry is doing its job in the aftermath of this horrific disaster, and although not perfect, overall, definitely getting the job done.