December 6, 2012
NJM Estimates
Sandy-Related Claims Could Exceed $300 Million
With more than
52,000 Sandy-related claims filed to
date, New Jersey Manufacturers
Insurance Company (NJM) anticipates
that payouts to policyholders who
have suffered covered losses could
exceed $300 million, four times what
it paid as a result of Tropical
Storm Irene. Irene was previously
the largest claims event in the
Company's 99-year history, with a
cost of $75 million. The Company has
already closed an estimated 45
percent of Sandy-related claims and
disbursed payments totaling nearly
$100 million to policyholders to
help them repair, replace and
rebuild damaged property.
Though the
expected payout is significant,
NJM's balance sheet is designed to
respond to the covered claims of its
policyholders in this type of event.
In its most recent evaluation by
A.M. Best Company, Inc., the
nation's leading credit rating
analyst for the insurance industry,
NJM was awarded an A++ (Superior)
for financial strength — the highest
possible rating — and policyholders
can be assured that, where coverage
exists, payments will be made.
NJM Insurance
Group is the Garden State's third
largest underwriter of Homeowners
coverage, insuring approximately
280,000 households throughout the
State, and is the largest provider
of Personal Automobile insurance,
with approximately 800,000 insured
vehicles. The most common homeowner
loss being reported is related to
wind damage, while the most common
cause of automobile loss is related
to flooding.
Flood insurance
for homes is available through the
National Flood Insurance Program
(NFIP). The NFIP is a federally
created program designed to provide
insurance for flood losses,
including storm surge, which are not
covered by a Homeowners policy. New
Jersey Re-Insurance Company, NJM's
subsidiary, is a participant in the
Write Your Own (WYO) federal flood
program in the region impacted by
Sandy and underwrites approximately
10,200 Flood policies for the
entity. To date, 4,600 flood claims
have been filed on those policies,
representing 45 percent of the book.
Flood claims are settled by
specially certified, independent
adjusters pursuant to rules
established by the NFIP. During the
claims process, NJM staff serves as
a liaison between claimants and
adjusters.
NJM's President
and Chief Executive Officer, Bernie
Flynn, emphasized that the Company's
number one priority is helping
policyholders recover from the
damage Sandy left behind, stating
that "we recognize our policyholders
need us now most of all. Regardless
of the volume of claims, or the
ultimate cost, our policyholders who
sustain covered losses can be sure
of our commitment to helping them
during this difficult time. The
entire NJM staff, and our trusted
partners, have been working around
the clock and will continue to do so
until all service obligations are
fulfilled."
In addition to
Personal Automobile and Homeowners
insurance, NJM, which will achieve
its 100th anniversary in 2013, is
the leading provider of Workers'
Compensation insurance in New Jersey
and a major carrier for Commercial
Auto coverage. To be eligible to
apply for Workers' Compensation or
Commercial Auto, an employer must be
a member of the New Jersey Business
& Industry Association (NJBIA).
Applicants for Personal Auto or
Homeowners insurance must meet
membership eligibility criteria. |
