San Diego – Hurricanes pose the greatest “act of nature” risk to the U.S. insurance industry for 2008, according to EMB, a San Diego-based actuarial consulting firm. In order to stay ahead, P&C companies must develop detailed enterprise risk management (ERM) strategies and processes that account for the risks in a shifting climate, the company says.
"We've seen the devastating effects of hurricanes - homes and other property completely destroyed. Insurance companies are still struggling to recover from Katrina," says Alice Gannon, senior consultant, EMB America. "The past two years have been quieter for insurers, but meteorological research indicates that we still experienced an uptick in North Atlantic hurricane activity. This is a trend that is likely to continue for several years, so insurers must prepare themselves to withstand losses in the event of another catastrophic landfall."
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