Do Catastrophic Events Make Insurers More Attractive Investments?

After this week's tornado outside of Oklahoma City, some investors may be thinking that the hit to insurers will be too much. But they might want to reconsider.

Jessica Alling
Jessica Alling
May 24, 2013 at 12:46PM

After Monday's tornado in Oklahoma, Allstate (NYSE:ALL), Progressive Insurance (NYSE:PGR), and Traveler's Companies (NYSE:TRV) all fell in the market. Along with AIG (NYSE:AIG), these insurance companies represent four of the top 10 providers for property and casualty insurance in the U.S. But when disaster strikes, should investors flee, or hunker down and wait it out?

In the video below, Motley Fool contributor Jessica Alling discusses the effect of catastrophic losses, what the insurance companies are doing about them, and how investors should feel about insurers going forward.