BestWeek: Commercial Claims From Katrina Stall as Coverage Disputes Escalate.

OLDWICK, N.J. -- One year after Hurricane Katrina, a substantial number of commercial insurance claims remain unresolved and tied up in litigation, according to an article in the Sept. 4 BestWeek.

New lawsuits arising from coverage disputes continue to flood the courts. But John Eager, senior director of claims at the Property Casualty Insurers Association of America, said field reports show insurers are "doing well in both commercial and noncommercial. I wouldn't say it's all good news, but I think in the commercial area we can hold our head up and say we've settled some really tough claims, we've settled the majority of claims, we've done it with on-site adjusters, and for those businesses that had a continuity plan, they're up even faster."

Eager pointed to the industry's payout figure in and around Louisiana area, about $32 billion to date, as an indication that claims are being settled. "If we projected the losses to be that high, and you look at the payout, that's very telling," he said.

Also featured in this week's BestWeek is Best's Insurance Composite Index, which finished the week of Aug. 31, 2006, at 1,137.98, up 7.90% from a year ago. The composite index reflects the performance of 132 insurance stocks. The week's top performers were Mercer Insurance; Direct General Corp.; Scottish Re Group Ltd.; National Security Group Inc.; and Gainsco Inc. The week's bottom performers were Sierra Health Services; ACMAT Corp.; EMC Insurance; United Fire & Casualty; and Financial Industries Corp.

BestWeek is published by A.M. Best Co. for insurance professionals.

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