The successive storms that have battered the Southeast are likely to boost insurance premiums in hurricane-prone areas, according to a new analysis by Fitch Ratings.
In an average year, there are about $11 billion in catastrophic losses in the U.S., but Hurricanes Charley, Frances and Ivan could leave destruction totaling $25 billion just by themselves, Fitch analysts estimated.
Those losses have come with three months left in the year and 10 weeks of hurricane season still to go, according to the National Weather Service’s definition.
More Top Picks Best Ergonomic Keyboards For Students
“Cumulative hurricane losses are now at a point where they could have a positive effect on insurance and reinsurance pricing,” according to Fitch. In short, prices are likely to rise in regions hit by the recent storms.
In Florida, the state-run Citizens Property Insurance Co. provides coverage for homeowners in high-risk areas. It is also likely to be a source of rising costs for insurance companies and their ratepayers in that state, since it can require an assessment on every insurance policy in the state when it doesn’t have enough money to meet expenses.
“Regulatory risk remains high, particularly in Florida,” the analysis found. “Homeowners have come to the realization that multiple events mean multiple deductibles. Additionally, if Citizens makes an assessment, the cost of that assessment will be built into future premiums.”
There is also the possibility that some insurers could decide they don’t want to do business in Florida anymore. Fitch analysts note that the nation’s largest insurance companies all have special subsidiaries operating in Florida.
“As we have indicated previously, Fitch believes the purpose of those subsidiaries is not to avoid claims, but, rather, to make credible an insurer’s threat to leave the state if regulation becomes too onerous,” the analysis found.
High school accounts added: Bank One and Chase bank branches have introduced special accounts for high school students.
The accounts feature free ATM withdrawals, free debit cards and no minimum-balance requirements. The accounts are only offered to students whose parent or legal guardian already has an account at the bank. More than 2,000 of the accounts have been opened since the program was introduced last month.
Bank registers voters: ShoreBank has begun a voter registration drive at all of its Chicago branches. The bank is providing voter registration applications at all offices and will offer on-site registration at several locations in the city.
“Similar to saving money to buy a home and start building wealth, participating in the democratic process is an important vehicle in which to empower people,” Anne Arvia, the bank’s president and chief executive officer, said in a statement. Information about the registration effort and the schedule for on-site registration is available by calling 773-420-4791.
LaSalle expands reach: LaSalle Bank has added another commercial loan office, this one in Pittsburgh. The newest office will serve the Pennsylvania and Maryland markets. Plans for a 14th commercial loan operation, in Connecticut, are under way.
LaSalle has pushed to move its commercial loan and real estate offices into large markets even if it has no retail branch presence there. The bank’s parent, ABN Amro, gives customers access to a global banking network, which has helped LaSalle carve a niche as it moves into new domestic markets.