(by G. Andersen)

Damage, caused by Hurricane Charley in Florida may force insurers to pay up to $10 million to policyholders despite of the fact that companies have learnt from 1992 Hurricane Andrew and turned their practices into reducing financial expenses in such cases.

"Since Andrew, US insurers have tightened policies," said Catherine Seibert, analyst with the credit ratings agency Standard and Poor’s. She also added that huge amount of losses would be paid by the Florida Catastrophe Fund.

Still, the sum is less than Andrew’s damage in $20 billion.

Unexpectedly for a Category Four hurricane Charley was smaller in size and weakened sooner than anticipated. That reflected in financial data as well as the price of stock of insurance companies dropped 3% before the damage and lifted 6% after it.

So, insurers breathed a sigh of relief having found out that insured losses would not exceed $10 million as compared with Hurricane Andrew’s.