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A.M. BestTV: Hawaii Dodged Hurricane, but Still Exposed to Flooding, Say A.M. Best Analysts

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In this A.M.BestTV episode, Steven DeLosa, associate analyst,
and Bobby Skrabal, financial analyst, both of A.M. Best, said the
insurance impact following Hurricane Lane mostly will be property and
flooding claims in Hawaii, although relatively few Hawaii homeowners
have flood insurance from the National Flood Insurance Program. Click on http://www.ambest.com/v.asp?v=hawaii818
to view the entire program.

DeLosa spoke about how insurers appear to have avoided major losses from
the recent storm activity.

"Hurricane Lane was more of a rain event than a wind event," said
DeLosa. "Insurers should expect mostly flood losses, which will impact
homes and possibly some automobile coverage. However, most private
insurers do not offer flood insurance, and those that do participate in
the Write Your Own Program, are reinsured by the National Flood
Insurance Program (NFIP)."

Skrabal highlighted what impact Hurricane Lane will have on companies
rated by A.M. Best.

"Some A.M. Best-rated companies had significant exposure on a gross
basis; however, after reinsurance their model losses are within a
manageable level of their policyholder surplus.… Although losses
generated from the hurricane may be an earnings event for some insurers
that are more concentrated in Hawaii, we do not expect it to be a
capital event for any of the insurers A.M. Best rates," he said.

To access a copy of this briefing, titled, "Insurers Equipped to Handle
Hurricane Lane Losses," visit http://www3.ambest.com/bestweek/purchase.asp?record_code=277468.

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