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. |