As insurers in September mobilized their claims efforts following three powerful hurricanes, many insurers came to the realization that risk assessment for hurricanes is under closer scrutiny. Some insurers that conduct business in Florida might be best served reassessing their strategies to reduce their exposure to risk.An actuarial executive for one Florida-based insurance company asserted that the industry needs to have a better grasp of the cyclical nature of hurricanes. The industry must also better understand hurricane frequency over a short period of time, such as the three hurricanes--Charley, Frances and Ivan--that walloped the U.S. mainland in just over one month's time.

Newark, Calif.-based Risk Management Solutions (RMS), a provider of products and services for the management of catastrophe risk, estimates that insured losses from Hurricane Frances ranged between $3 billion and $6 billion. At that level, insured losses from Frances would be less than the losses associated with Hurricane Charley, which are currently estimated at $6 billion to $8 billion.

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