“State Responses to Superstorm Sandy and Other Natural Disasters: Implications for Ceding Companies and Their Reinsurers”
Superstorm Sandy struck the Northeast United States five miles outside of Atlantic City, New Jersey, leaving devastating flooding and storm damage in its wake across wide swaths of the Mid-Atlantic and Northeast. Some estimates place the damage at approximately $50 billion, with the total potential liability for insurance
companies estimated to be approximately $22 billion.
Prior to and after Superstorm Sandy, many States implemented wide-ranging measures to assist consumers affected by the storm, including some that significantly altered the contractual relationship between insurance companies and their insureds.
This Stroock Special Bulletin examines state regulatory responses to Superstorm Sandy and other natural disasters, including the legal footing for those responses
and their potential implications for ceding companies and their reinsurers.