The decisions to waive hurricane deductibles in states hit by Hurricane Sandy and its remnants mean "a greater financial loss" for property/casualty insurers and could raise overall insured losses by as much as $2.2 billion, Milliman's Philip Borba writes. The decision would spur "a considerable amount of effort" in "sorting out whether property owners or insurers will be responsible for the significant losses" related to such deductibles after Sandy, Borba writes. "In the long run, there is a need for improved clarity through clearer regulations or statutory actions concerning the applicability of wind deductibles."

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