MADISON, Wis. — Hurricane Ike resulted in $10.2 million in damage claims from credit unions, which represented the second largest total in the last eight to 10 years, according to CUNA Mutual Group.
But the claims pale in comparison to Katrina of 2005 with totals topping $22 million, said Michael Retelle, manager of CMG's Property and Casualty Claims unit.
In a wrapup report on Ike losses by the insurer, Retelle also suggested that while CUs performed generally well on disaster planning, still more work needs to be done, particularly on overall coverage to remote branches and on both "cold and hot sites."
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"Some credit unions were unprepared for the dramatic impact and in some cases left it to others in the movement to take care of them during the disaster and that turned out faulty," said Retelle contending that future advance work needs to be done on data and communication lines which experienced major disruptions during the September storm.
A failure to act next time to service members, he warned, could bring regulatory action. In its report, CMG said 95 CUs made damage claims for 256 locations. Roughly 90% of the claims were from Texas, Retelle said.
Ike's damage to CUs mostly was from blown off roofs and downed trees. Houston Police FCU sustained the largest damage–$2.2 million in roof damage–and is operating from modular units.
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