Industry News

Hurricane Sandy to cause processing delays throughout the life insurance industry

Due to inclement weather from hurricane Sandy, several insurance carriers have had to suspend all shipping and mail services.  The suspension includes mailing services from FedEx, UPS and USPS and may last for several days. Service centers throughout the eastern united states have been closed due the the severe weather. Delays may last several days, depending on the severety of the storm.

In addition, the Stock Market closure will delay any indexed universal life and variable universal life financial transactions, including policy issuance.  This is the first time since 1985 that a major storm has shut down NYSE and Futures trading in New York. A statement says floor and electronic trading have been closed today and a decision about Tuesday will be made later.

These delays could cause an application processing backlog even after the stock market is reopened and mailing services resume.

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