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special section:reinsurance

The Year of the Cat

After a catastrophe, details matter

By Sue Stein

A reinsurer has a unique vantage point during a catastrophe. Reinsurers are a step away from ground zero. They do not pay or process claims to policyholders or communicate directly with agents, adjusters or insurance departments. Through relationships with clients, however, reinsurers can listen and learn many lessons about catastrophe plans - what works and what doesn't. What follows is a discussion of lessons learned by some insurers about the effectiveness of their cat plans when tested by disasters. These lessons can help insurers improve claim results during the next catastrophe.

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