Needham, Mass. - In the wake of 2005--the worst year on record for insured catastrophe damage in the United States with losses estimated at $56.8 billion--the federal government, insurance carriers, and the general public are coming to a point of convergence about the need to rethink catastrophe management beyond the much publicized issues around hurricanes, according to new research from TowerGroup.In a report titled "Property and Casualty Insurance: Convergence in Catastrophe," the research and advisory firm finds that without a concerted effort by all parties to support a holistic solution to catastrophe management, the dire predictions of insolvency in the insurance sector and general economic upheaval across the United States may come to fruition.
"A workable solution for containing loss requires the federal government, insurance carriers, and the general public to do their part to help mitigate risk--each focusing on areas they can reasonably impact," says Karen Pauli, senior analyst in TowerGroup's insurance research practice. "The federal government should enact meaningful laws, the insurance industry should develop supporting products, and members of the general public should become more proactive in protecting their property. It will take all three of these interested parties working in concert to effect the long-term change needed to reduce the risk posed by today's catastrophe landscape."
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