[jpsb]

260 billion? I was thinking 100 billion, but if we lose New Orleans then 1 trillion will be closer to the mark.

This storm will forever change the insurance business. Costs are about to go up, alot.

[eastforker]

Been watching those houses burn in NO in close neighborhoods with no way to put them out, could easily jump to entire neighborhoods.

[Alberta's Child]

If Hurricane Andrew didn't change the insurance business, then this storm won't either. Insurance companies are prepared to deal with catastrophic losses like this periodically. In fact, that's precisely why they are in business -- to deal with catastrophic losses.

However, I do expect to see one major change as a result of this catastrophe (if this hasn't been done already). Property and casualty insurance policies for customers who live in a flood plain like New Orleans will probably include waivers against any claims that result from a flood caused by the failure of a dike or levee.

Insurance companies generally don't raise their premiums as a result of disasters like this. What they would prefer to do is limit their exposure by simply refusing to insure buildings in certain areas.