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Tornadoes may cost insurers $2B, risk modeler says

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Tornadoes that slammed five states in the U.S. Midwest and South last week may generate as much as $2 billion in claims costs for insurers, risk-modeling firm Eqecat Inc. says.

Tornadoes have killed 49 people in the United States this year, according to a statement issued Monday by Oakland, Calif.-based Eqecat. The tornadoes will probably bring claims of $1 billion to $2 billion, the firm said.

More than 150 tornadoes touched down from Feb. 28 through March 3, most of them in Tennessee, Kentucky, Indiana, Illinois and Alabama, Eqecat said. The U.S. has experienced 272 tornadoes this year through March 4, more than twice the seven-year average for the period, according to the statement.

“With basically a month’s worth of tornadoes last week, that doesn’t necessarily say that the rest of the year will be as bad as it has been so far,” said Jose Miranda, Eqecat’s director of client advocacy. Referring to conditions that increase the likelihood of tornadoes, he said, “You have to have all the ingredients come together.”

State Farm Mutual Automobile Insurance Co., the biggest U.S. home and car insurer, is among the top two providers of homeowners’ coverage by market share in Alabama, Kentucky and Indiana, according to data compiled by Bloomberg. The insurer received about 3,600 claims from the tornadoes for that line as of March 3, Holly Anderson, a spokeswoman, said in an e-mail.

“These are early numbers and we expect to know more early this week as our customers assess damage,” said Anderson.

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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