Natural Catastophe Response

The 2004 and 2005 hurricane seasons brought unprecedented devastation to the gulf coast causing over 1200 deaths, 7 million insurance claims, and more than $100 billion in insured losses. As hard as it is to imagine, future mega catastrophes could be even worse, and a reactive response will not suffice. The NAIC and state insurance regulators are working to develop a comprehensive national plan for managing catastrophe risk that incorporates new risk management techniques with a solid foundation of solvency and consumer protection inherent in state insurance regulation. Parallel to these efforts, Congress has indicated renewed interest, as well. Currently, there are several bills pending in Congress that deal with various aspects of catastrophe risk management.

NAIC members have taken an active role in educating Congress and providing technical feedback on various proposals regarding natural catastrophes. NAIC members have met with Members of Congress and testified six times since June 2006 on these important issues, and stressed the important role of the states in effectively managing a natural disaster response.