[Alberta's Child]

If Hurricane Andrew didn't change the insurance business, then this storm won't either. Insurance companies are prepared to deal with catastrophic losses like this periodically. In fact, that's precisely why they are in business -- to deal with catastrophic losses.

However, I do expect to see one major change as a result of this catastrophe (if this hasn't been done already). Property and casualty insurance policies for customers who live in a flood plain like New Orleans will probably include waivers against any claims that result from a flood caused by the failure of a dike or levee.

Insurance companies generally don't raise their premiums as a result of disasters like this. What they would prefer to do is limit their exposure by simply refusing to insure buildings in certain areas.

[jpsb]

"If Hurricane Andrew didn't change the insurance business"< p>Huricane Andrew did as I recall, I can no longer get insurance (private) here in galveston county Tx. I think the costs of these storm will be much greater then Andrew, how much will be covered by private companies I haven't a clue. My insurace is already thru the roof, and I expect to see it go up alot more because of Katrina.

[al baby]

In fact, that's precisely why they are in business -- to deal with catastrophic losses.

Wrong they are in Business to make money