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CNN Live At Daybreak
Preparations for Isabel Being Made as Far North as Massachusetts
Aired September 16, 2003 - 05:33 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Preparations for Isabel are being made as far north as Massachusetts. Squalls and gale force wind gusts could hit the state by Friday. And while people in the hurricane's expected path brace for the worst, some outside the affected areas are also getting ready for their own storm.
CNN's Fred Katayama explains.
(BEGIN VIDEOTAPE)
FRED KATAYAMA, CNN CORRESPONDENT (voice-over): As homeowners put up their defenses ahead of Hurricane Isabel, insurers brace for the worst.
JAY COHEN, MERRILL LYNCH: If you look at who has the biggest share in, say, homeowners' insurance, where a lot of the claims will come in, you've got names that you'd expect, like Allstate, like Travelers, like Hartford.
KATAYAMA: Storm trackers say Isabel could produce losses rivaling that of Hurricane Hugo, the 1989 cyclone that slammed the Southeast.
HEMANT SHAH, RISK MANAGEMENT SOLUTIONS: If it were to continue along the path it's been on for the last couple of days, it's likely to make landfall in the Carolinas and in certain circumstances we could expect to see insured losses in the billions, perhaps $4 billion to $6 billion of insured loss, with total economic losses perhaps two times or even greater beyond that.
KATAYAMA: The costliest storm by far was Hurricane Andrew 11 years ago. That cyclone struck Florida and caused $20 billion in insured damages, putting about a dozen insurers out of business. Hugo and Georges were distant runners up.
The terrorist attacks, the drop in interest rates and the stock market slump dealt a big blow to insurers. But analysts say the industry in general is very solid. Since Hurricane Andrew, insurers have diversified their geographic exposure so that they're not overly exposed to clients in hurricane prone areas like the East Coast.
(on camera): And most insurers spread their risk by reinsuring at other firms. Post-9/11, they boosted premiums and the industry has produced a surplus of several hundred billion dollars last year.
Fred Katayama, CNN Financial News, New York. (END VIDEOTAPE)
COSTELLO: And you can track Isabel on our Web sites and get some tips on how to prepare for a hurricane. You know the address, cnn.com, AOL keyword: CNN.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Massachusetts>
Aired September 16, 2003 - 05:33 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Preparations for Isabel are being made as far north as Massachusetts. Squalls and gale force wind gusts could hit the state by Friday. And while people in the hurricane's expected path brace for the worst, some outside the affected areas are also getting ready for their own storm.
CNN's Fred Katayama explains.
(BEGIN VIDEOTAPE)
FRED KATAYAMA, CNN CORRESPONDENT (voice-over): As homeowners put up their defenses ahead of Hurricane Isabel, insurers brace for the worst.
JAY COHEN, MERRILL LYNCH: If you look at who has the biggest share in, say, homeowners' insurance, where a lot of the claims will come in, you've got names that you'd expect, like Allstate, like Travelers, like Hartford.
KATAYAMA: Storm trackers say Isabel could produce losses rivaling that of Hurricane Hugo, the 1989 cyclone that slammed the Southeast.
HEMANT SHAH, RISK MANAGEMENT SOLUTIONS: If it were to continue along the path it's been on for the last couple of days, it's likely to make landfall in the Carolinas and in certain circumstances we could expect to see insured losses in the billions, perhaps $4 billion to $6 billion of insured loss, with total economic losses perhaps two times or even greater beyond that.
KATAYAMA: The costliest storm by far was Hurricane Andrew 11 years ago. That cyclone struck Florida and caused $20 billion in insured damages, putting about a dozen insurers out of business. Hugo and Georges were distant runners up.
The terrorist attacks, the drop in interest rates and the stock market slump dealt a big blow to insurers. But analysts say the industry in general is very solid. Since Hurricane Andrew, insurers have diversified their geographic exposure so that they're not overly exposed to clients in hurricane prone areas like the East Coast.
(on camera): And most insurers spread their risk by reinsuring at other firms. Post-9/11, they boosted premiums and the industry has produced a surplus of several hundred billion dollars last year.
Fred Katayama, CNN Financial News, New York. (END VIDEOTAPE)
COSTELLO: And you can track Isabel on our Web sites and get some tips on how to prepare for a hurricane. You know the address, cnn.com, AOL keyword: CNN.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Massachusetts>
