IronRock Insurance Company says it expects to settle 90 per cent of Hurricane Melissa claims for which it is the sole writer or lead insurer by September, after already paying out about $1.2 billion.
Chief Executive Officer Christian Watt says the company has been processing claims steadily, but notes that underinsurance remains a major issue.
He says 50 per cent of the claims settled so far involved underinsurance, while the remaining 50 per cent did not.
However, when the average clause is applied, he says, underinsurance accounts for roughly 75 per cent of all claims.
Financial analysts say the situation could worsen if general insurance companies respond to possible fee increases from the Financial Services Commission, as well as higher reinsurance costs from international firms by raising premiums.
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