Natural disasters and insurance

Insurance industry outlook

Disasters have an impact on the insurance industry Natural disasters do not only affect a certain type of person; they also have an impact on the insurance industry. It can be difficult for people to see the impact that catastrophic events have on insurers due to a general disdain for the industry as a whole. The most common response an insurer has to natural disasters, however, in the long run it does raise rates. This is something that typically attracts a great deal of attention from policyholders of all kinds. Many…

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Trustmark Life Insurance clashes with federal regulators over higher insurance rates

Trustmark Life Insurance Co. has run afoul of federal insurance regulators who claim that the company has raised rates for health insurance to unreasonable levels. The insurer has raised rates in five states by at least 13%, according to the Department of Health and Human Services. These states are Arizona, Virginia, Wyoming, Pennsylvania and Alabama. The Affordable Care Act requires insurers to submit their rate proposals for federal review if they pass the 10% mark. The Department of Health and Human Services has ordered the insurer to rescind the rate…

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Louisiana Supreme Court reinstates suit against states Citizens Property Insurance group

The Louisiana Supreme Court has voted to reinstate a $92.8 million suit against the state’s Citizens Property Insurance Corp. this week. The suit originated in early 2006 and claims that the state-run insurance organization was intentionally slow in adjusting insurance claims resulting from Hurricanes Katrina and Rita. The 24th Judicial District Court had awarded some 18,000 homeowners with roughly $5,000 after hearing the case. The action, however, violated state law and put the suit on hold for some time. The ruling has found a staunch enemy in the state’s Insurance…

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Health care costs may be uncontrollable as the populace ages

The costs of health care are on the rise, putting heavy financial strain on insurance companies which, in turn, translates into higher premiums for consumers. While arguments regarding the cause of rising health care rates abound, the real reason for the phenomenon may be something that is impossible to control. The so-called baby boomers generation is steadily aging, with many reaching the twilight years of life. With age comes a sleuth of new medical concerns ranging from cancer to dementia. While older generations have been dealing with such troubles for…

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Property insurance rates in Mississippi even out but insurers still wary

The Mississippi Insurance Commissioner, Mike Chaney, is reporting that property insurance rates in the state are leveling off. Chaney spoke Tuesday at a luncheon hosted by the Gulf Coast Business Club. Predictions of an unusually active hurricane season earlier this year from the National Oceanic and Atmospheric Administration spurred a sharp rise in insurance rates in Mississippi and neighboring states. The momentum seems to have died out, however, a trend that Chaney believes is due to models that suggest many storms will be diverted to Texas or up the East…

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