Fraud Suspicions In New Orleans

Among the hardships and losses from hurricane Katrina, a second calamity-fire is raising fraud suspicions at flooded homes. There has been an increase in the nuber of claims in fire losses compared to what is normally claimed, stated State Farm Insurance spokesman Morris Anderson. People are trying to recoup losses they have received from Katrina, but they should not be doing so by insurance fraud.

My question is if this will affect insurance premiums in the future for "catastrophic" geographic areas in the country. This could have a huge impact on the economy. Will this impact be in the short-run, or long-run?