Why Insurers May Be Unprepared for the Next Big Storm (CNBC)


[[{“type”:“media”,“view_mode”:“media_large”,“fid”:null,“attributes”:{“class”:“media-image alignright size-full wp-image-1599”,“typeof”:“foaf:Image”,“style”:“”,“width”:“100”,“height”:“100”,“title”:“”,“alt”:“CNBC”}}]]As extreme weather events such as hurricanes, tornadoes, and wildfires occur more frequently, experts and consumers are concerned that insurance companies are not as prepared as they need to be for future storms, reports CNBC.

Anant Sundaram, a visiting professor of business administration at the Tuck School of Business, tells CNBC, “They need to get out in front of this. It comes down to more than just raising premiums on customers. It’s being pro-active and thinking ahead.”

According to Sundaram, European insurance companies are better prepared than those in the U.S. “I think European insurers are better at trying to do more risk analysis and working on a local level with cities on building codes and in general are more worried about severe weather.”

Read the full story, published 3/11/13 by CNBC.

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