While the credit crunch occupies most column inches, (re)insurers will be all too painfully aware that 2008's hurricane season has generated significant losses. The 2008 losses are not on the same scale as those of 2005 but they are still very significant - total losses from the 2005 hurricanes Katrina, Rita and Wilma ("KRW") were $40bn, $5bn and $10bn respectively; the final figure for Ike is estimated to be between $7bn and $12bn (although many have suggested this is too low), and Gustav between $2bn and $7bn. In addition, underwriters' investments and capital positions are under considerably more pressure now than in 2005 as the credit crunch impacts on balance sheets and the ability to raise further capital.
In this article, we examine some of the key legal issues to be considered by (re)insurers while dealing with hurricane losses to ensure that claims are handled effectively at a time of...
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