After the occurrence of Hurricane Katrina, insurance companies refused to pay claims to insurance holders who paid premiums on time and had binding legal contracts. What do you think the impact is to the "image management" that these insurance companies will have to deal with after all of the lawsuits?
This was a horrible tragedy, and the lawsuits that stemmed in the aftermath were in the thousands. In short, insurance companies started claiming that there was fine print located in several of the policies, where homeowners had to pay extensive amounts - up to $40,000 and 50,000 in order to reap the full coverage benefits of natural disaster coverage. Other insurance companies claimed that the disaster caused so many customers to need assistance that the insurance companies had to stop paying simply because they didn't have enough manpower to handle the claims. Here is a ...
This solution discusses image management and insurance companies in relation to natural disasters. We take a close look at Hurricane Katrina and the way it was handled by insurance companies.