Storm Won't Sink Insurers; No Repeat Of Andrew?; Firms have spread risk, reduced response time since other big disasters.(A)

Byline: MONICA SHOWALTER

Well before insurance teams can even get into flooded New Orleans and hurricane-ravaged Gulf Coast areas, the industry is confident that it can handle America's worst-ever hurricane catastrophe with little trouble.

But for people without adequate insurance, it may be different.

"We have resources to handle all claims for the storm," said Fraser Engerman, spokesman for privately held State Farm Insurance of Bloomington, Ill., even if insured losses hit $26 billion, which would be a U.S. record.

State Farm is Louisiana's top home insurer with a 34.7% market share, and comparable numbers in Mississippi, Alabama and Florida. Engerman wouldn't state the company's reserves but said State Farm is financially big and strong.

Publicly traded property and casualty insurers held up relatively well after Hurricane Katrina, falling just 1.1% last week. Allstate slid 5% amid concerns that it hadn't reinsured its policies. But even that loss wasn't dramatic.

Insurers have become savvier, learning from a series of catastrophes in the past 13 years.