The most recent estimates for total losses and damages from Superstorm Sandy will end up causing about $20 billion in property damages and $10 billion to $30 billion more in lost business, according to IHS Global Insight, a forecasting firm. More than thirty percent of these losses will be realized by New York City. Mayor Bloomberg has recently raised the issue of recent abnormal weather in the Northeast, and particularly New York City, being a glimpse into the future of what will come as a result of Global Warming.
Let’s just consider for the moment that the Mayor could be right. Can you imagine the number of insurance claims submitted by policy holders; denials of many claims by insurance companies concerned about their financial performance and the massive number of lawsuits that could result from this activity?