With much of the news coverage of Hurricane Katrina centered on displacement and death tolls, those attending a Sept. 7 meeting at the School of Business looked to add financial concerns to the discussion.
Gamma Iota Sigma, an insurance and risk management fraternity, sponsored the town hall meeting themed “Financial Risk Management for Natural Disasters.”
As the featured speaker, Etti Baranoff, associate professor of finance insurance and real estate, explained that insurance costs will rise as a result of two catastrophes. She said the first catastrophe was a natural one, the hurricane. The second catastrophe was man-made – looting and civil unrest.
“There were no garbage bags or portable bathrooms; sanitary conditions were horrible,” Baranoff said. “The city braces for mold, fungi and decay.”
She said these catastrophes have created a “health hurricane,” searches for new jobs and economic consequences.
Van Wood, a marketing and business law professor, told the audience that the world is waiting to see what the United States will do first. He explained that to the rest of the world, the bad news is that this happened. The good news is that this happened to a country financially capable of absorbing the blow.
Between 30 percent and 60 percent of people in Louisiana had flood insurance. Only 10 percent had flood insurance in Mississippi. Since many residents were not living in flood zones, they did not have flood insurance.
Participants in the town hall meeting reiterated that economic problems will go beyond homes. Officials are contemplating tearing down the Louisiana Superdome, a venue that brings a significant amount of money to the city.
Baranoff pointed out the need for tougher building codes to ensure future survival.
She also shared an article titled “Washing Away,” which the New Orleans Times-Picayune published in 2002. In the article, reporters wrote, “It’s only a matter of time before South Louisiana takes a direct hit from a major hurricane. Billions have been spent to protect us, but we grow more vulnerable every day.”
This article prompted many in the room to wonder why the city was so unprepared; however, Baranoff explained a storm like Katrina only occurs once every 500 years.
Junior Cassandra Tyler, a social work major, said it was interesting to learn about Hurricane Katrina from a business standpoint.
“The material that was presented was very informative and made me look at the situation from a different perspective,” she said.
Meredith Bryant, president of Gamma Iota Sigma, explained that it was important to have a forum addressing these issues since many students do not know the reality of the situation.
The news desk contributed to this story.