Innovative Past Has a Future Role

Though fire remains a significant peril for property insurers, the efforts of insurers, builders, the fire service and government have succeeded in bringing the losses under control. However, the active 2005 hurricane season brought windstorms sharply into focus, with 27 named storms and 14 hurricanes. Population growth in Gulf and Atlantic coastal counties has been explosive. Today, roughly 38% of total US insured exposure value is in coastal counties. Whether addressing wind exposure from hurricane, tornado, or microburst, the insurance industry is in a unique position to apply its loss control expertise to help tame wind losses and can use its past experience in addressing the fire peril as a guide.