Order Out of Chaos

Insurance claims resulting from catastrophic weather are at an all-time high. Events such as wildfires, hurricanes, and floods caused 39% of home insurance claims in 2020.

In 2021, the trend continued. Hurricane Ida impacted 19 states, with predicted damage of around $95 billion, making Ida the seventh costliest hurricane since 2000.

Winter Storm Uri resulted in more than 450,000 claims and nearly $20 billion in losses in Texas. The number of catastrophes and resulting claims creates challenges for the insurance industry.

The key to a successful response to any catastrophe is a well-established, carefully mapped out response plan that is developed before the catastrophe strikes. The plan should clearly set forth claim intake methods, response protocols, inspection protocols, investigation expectations, supplemental claims processing, and diary response.

Handling a catastrophe claim is not substantially different from handling a non-catastrophe claim. The key difference is the volume.