Editor’s Note: A long way to go

While significant problems persist-severe damage to public infrastructure and reduced populations continue to present challenges-the billions of dollars in claims paid to date are helping fuel an increase in residential building.

In many respects, Louisiana and Mississippi have made great strides in restoring their coastal areas in the year since Hurricane Katrina wreaked its havoc and claimed well over a thousand lives. But by most accounts, they still have a long, long way to go. While some parts of New Orleans are back up and running at near pre-Katrina levels, many locations still look like the hurricane hit last week, not last year. President George W. Bush, at ceremonies marking the anniversary of that terrible storm, acknowledged the weakness of the federal government’s response to Katrina’s devastation, but reaffirmed its commitment to helping the Gulf Coast recover. He noted, however, that the federal government can not do it by itself and called on state and local officials to move forward with a rebuilding plan.

Still, the outlook 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 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-severe damage to public infrastructure and reduced populations 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 recent 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.

Meanwhile, we’re halfway through the 2006 hurricane season and even though Tropical Storm Ernesto is bearing down on Florida as this issue goes to print, the season has been relatively quiet so far. Let’s hope it stays that way.