bizjournals: Insurers put on spot by hurricane related fraud

http://www.haber32time.com/Toasters/T_Fal-Toasters-493.html
reports that claims resulting from the 2004 season came from everuFlorida county, even those hundreds of milex from last year's storms. That report has led statew politicians to call for investigationas ofthe industry's handling of An Orlando Business Journal analysis of statistic gathered by the Florida Office of Insurances Regulation reveals the pattern. For instance, the business journakl found, residents of the Florida panhandlecollectedr $21.3 million from Hurricane Charley, whichg followed a path 140 miles southeast of the nearestg panhandle county.
"Anyone would know a Hurricane Charleu claim in Santa Rosa County has tobe fraudulent," said Bill executive director at Florida Consumer Action a statewide citizens group with 40,0000 members. "Good God -- no wonder the insurancde rates are sohigh ... Why are the insuranc e companies payingthese people? That hurts all the honest consumers when insurance companies are not paying attention to who they'res paying money to. It's not fair." The paper's analysis led statd Sen. Ron Klein, a Boca Raton to call for a freezse on property insurance rate hikes untill an investigationis performed, reports.
"We are on very stron ground to stop future rate increases untilp they explain why these claims werepaid out," he Insurers, though, said they were trying to keep up with fraudulenf Florida claims. "The insurance companiews have turned in suspected fraud cases to the stated Division ofInsurance Fraud," said Sam Miller, vice president of the Tallahassee-basecd Florida Insurance Council Inc. "Theuy have been going throug claims fromlast year. I'm sure some fraux went on -- therew were 1.7 million claims. At the end of last the Florida Division of Insurance Frauxd 632 tips about fraud related tolast year'ss hurricanes.
Thirty-two people have been arrested, 8 convicted, and 85 are unded investigation. Almost three-quarters of the tips have been from private citizens. Insurance companies have five yeare to report theirfraud "It's not a situation where we just hand over a check," says Ryan an Allstate Floridian Insurance Co. spokesman. The Florida disclosures arise as the insurancew industry warns of the tough consequencees ofthis year's record-breaking season. Hurricanexs Katrina and Rita devastated the Gulf Coast from Alabama to Texas, and Hurricane Wilma sockerd South Florida. That couldc be just the beginninbg of much more active Atlantic hurricane expertshave warned. Insurance companies are listening.
They'rw looking at whether they want to do business in areae like theGulf Coast, the reports. "We need to go state-by-state to make sure we avoid the mistakes ofthe past," said Joseph Annotti, senior vice presidenr of public affairs for the Property Casualty Insurersx Association of America. Those who attendec a conference of industry officials in October called for reform ofthe nation' insurance system to providew a safety net for firms facing catastrophic storms. reporta that the combined effect of all the and concerns aboutfuture storms, will be higher ratesx not just for homeowners and land-basedx businesses, but for oil and gas producerw in the Gulf of Mexico as well.
Oil and gas operatorsw can expect to pay up to 400 percent more for insurancde because of Hurricanes Katrinaand Rita, the Houstoh Business Journal reports. And insurance for the Gulf oil platformes that produce much of theUnitedf States' domestic oil may be harded to get. Bill Martin who heads the Houstohn office of Benfield Corporate an insurance provider to theenergy industry, told the Houstoj Business Journal, "We believe this is going to be a pointt of departure for energy insurance markets," he "(Insurers) will be looking at the exposurw in the Gulf of Mexicop and the Gulf Coast.
2005 was a very dramatidc year, and the insurancw industry has to adapt to Pricing will go up and it will be more more geared to the locationj and design of assetsbeing insured."