We can price for the probability of certain events. But we can't price for what amounts to political risk. |
We had not just one event but several that eventually caused 3 million claims. It caused an exceptional strain on claims-handling resources. |
While formidable, Isabel will fall generally within the range of catastrophic risk that insurers anticipated and built into insurance premiums for homeowners and businesses along the East Coast. I would not expect the storm by itself to have a significant effect on insurance rates. |