Contact
Mark Hanna
(512) 326-7616
For Immediate Release
August 28, 2006
Lessons Learned from Hurricane Katrina
Texas insurers were thankful that Hurricane Katrina avoided the state’s coastal
property, but the storm provided the industry valuable lessons in dealing with future
catastrophes. Hurricane Katrina forced companies to focus on improving
communications, access and manpower.
Hundreds of insurance adjusters began migrating toward the affected areas in
Louisiana, Mississippi, Alabama and Florida after Hurricane Katrina made landfall.
Most were waist deep in adjusting claims for businesses and homeowners, when
Hurricane Rita struck Texas and Louisiana one month later.
“Companies learned that they better have a sufficient number of adjusters
standing by no matter how many hurricanes hit or where,” said Mark Hanna, a
spokesman for the Insurance Council of Texas. “Many insurers have begun crosstraining employees so that they can fill in and offer assistance wherever they might be
needed.”
The Texas Department of Insurance (TDI) offers emergency adjuster licenses and
has opened the door for adjusters outside Texas to come in and help with catastrophes.
TDI agents license director Matt Ray said, “We don’t want to be in the way of getting
these people out there to assist Texas policyholders. That’s why, during a catastrophe,
TDI allows non-resident insurance adjusters to work in Texas without obtaining a Texas
license, including experienced adjusters whose states don’t license adjusters.”
Ray says he sees emergency licensed adjusters as a supplement to those already in
place.
“The individual seeking the emergency adjuster license isn’t required to have
previous adjusting experience but must be sponsored by a licensed adjuster or an
insurance company,” said Ray. “The emergency license is given first priority in
processing and can be good for up to 180 days.”
Communications is a key component in dealing with any catastrophe. Most cell
phones were useless after both Hurricanes Katrina and Rita. Insurers say they will rely
more on satellite phones in the future.
“The Internet became our most important tool as it was more reliable than phone,”
said Lisa Weiland, regional president of Travelers South Central Region. “Immediately
after the storm, we built a Web page dedicated to catastrophe communication where
agents could find important information and contact us regarding their temporary location
and operating status. This site allowed us to reach out to our agents and help them
connect to their customers as soon as possible.”
Many insurance companies and relief agencies have already designated locations
outside coastal communities that can serve as distribution points in providing
information, supplies and shelter.
“The damage from Hurricane Katrina and Rita completely cut off help to many
areas,” said James Langford, assistant vice president of Texas Farm Bureau Insurance
Companies. “We’re looking at placing command centers away from the coast, but close
enough to allow us to fulfill our job responsibilities in putting people back in their homes
and getting them on with their lives.”
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