Sandy, the Atlantic superstorm that caused flooding, damage and blackouts throughout the U.S. Northeast this week, may lead to higher insurance rates and tighter terms in the affected areas.
Carriers that underwrite business property may be “pushing rate” in the aftermath of Sandy, said Al Tobin, managing principal of the property practice at Aon Risk Solutions, the insurance brokerage arm of London-based Aon Plc. Insurers and their commercial clients are still assessing damage.
“There’ll be some impact on the market,” Bart Hedges, chief executive officer of Greenlight Capital Re Ltd., said in an interview about Sandy on Bloomberg Television. “There’ll be some uptick, but I don’t think it’s going to be a big, market-changing event.” Greenlight is the reinsurer that has hedge-fund manager David Einhorn as its chairman.