Editor's comment: Testing our mettle

Predictions that the candidate whose supporters have the highest turnout will win seem obvious, but it would be unsurprising if votes are down in those parts of New York and New Jersey hardest hit by the terrible storm.

Pundits were watching closely for evidence of Barack Obama's success or failure to appear ‘presidential' in the face of the catastrophe but, devastating as Sandy has been, it is unlikely to have pushed the bigger picture of jobs and the economy far from voters' minds.

Insurers, too, know their mettle is tested only at the point of claim and, no matter how slick an operation they have created, an insurer's hard graft will be overlooked if a legitimate claim is not paid with the grace a policyholder expects.

Likewise, shouting about a successful response to a major loss must be done tactfully, not least in respect of the affected policyholders and because many positive actions are often easily overshadowed by a single negative one.

With loss estimates currently around the $20bn mark, and reinsurers looking only slightly more fazed by possible losses than a week ago, the potential that a windstorm that batters Manhattan will have nothing more than a localised impact on insurance rates seems incredible.

That said, Tuesday also brought two announcements showing the reinsurance market at its innovative best, developing products for just this type of scenario in the form of Scor's $60m catastrophe bond for US hurricanes and earthquakes and European windstorms, and Swiss Re's $200m bond covering North American hurricane and UK extreme mortality risk.

One person who will pay close attention to events over the pond is Andy Haste, former CEO of RSA, who finally put the market out of its misery by revealing that he has accepted a role as deputy chairman at Lloyd's.

The appointment of a man linked to a takeover bid of Direct Line Group not so long ago, and who successfully pulled RSA out of America, has surprised many commentators.

But asked whether taking the role ruled out other insurance-related opportunities, a Lloyd's spokeswoman said that "should they arise, we would discuss them to avoid any conflicts of interest".

That certainly leaves a number of doors open for the man once dubbed the "hottest management property in insurance".

Mairi MacDonald, news editor