Sandy, the Atlantic superstorm that caused flooding, damage andblackouts throughout the U.S. Northeast this week, may lead tohigher 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 theproperty practice at Aon Risk Solutions, the insurance brokeragearm of London-based Aon Plc. Insurers and their commercial clientsare still assessing damage.

“I also suspect they're going to be looking hard at deductibles”and limiting the amount of flood coverage they write, Tobin said ina phone interview. Aon, the world's largest insurance broker, helpsarrange coverage for business customers.