by Ben Steverman
Insurance executives don’t sound too worried about the impact of Hurricane Sandy on their companies’ bottom lines despite its causing up to an estimated $50 billion in damage. Allstate’s chief executive issued a statement on Oct. 31 saying the storm “is not expected to have a material impact” on the company’s overall financial condition.
“One of the old axioms in the insurance business is ‘bad news is good news,'” said William Blair analyst Adam Klauber, speaking on Bloomberg TV. There are two reasons for that, he said. Post-disaster, insurers find it easier to raise rates. Also, Klauber said, “it reminds people they need to buy insurance.”