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Insurers Set to Pay for Hurricane Matthew

Insurers say they are prepared, as Hurricane Matthew threatens.
Insurers Set to Pay for Hurricane Matthew
October 5, 2016

The U.S. is bracing itself for Hurricane Matthew, the most powerful Atlantic storm in a decade, which is expected to move along the East Coast after having devastated Haiti.

Many of the new insurance companies that were set up after the series of hurricanes that hit the U.S. in 2004 and 2005, an onslaught that ended with Hurricane Wilma, could have their ability to process claims tested for the first time by Hurricane Matthew. Although the storm’s path cannot be predicted precisely, insurers are urging policyholders to make preparations to protect themselves and their properties.

Companies are reassuring their policyholders that they have made plans to respond rapidly to claims. As part of an analysis of the claims-paying capacity of 112 insurance companies by the Florida Office of Insurance Regulation in the wake of a 1-in-a-100-years storm, 67 companies were subjected to a catastrophe stress test and all passed the test. Lynne McChristian, Florida spokesperson for the Insurance Information Institute, said that the insurance industry has not seen a major storm in a decade and therefore has been able to strengthen its reserves and is well capitalized.

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