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Insurance Markets Still Troubled Five Years After Katrina

Five years after Hurricane Katrina devastated the Gulf Coast, neither the federal government nor the private sector is any closer to developing effective solutions to...
October 27, 2010

Five years after Hurricane Katrina devastated the Gulf Coast, neither the federal government nor the private sector is any closer to developing effective solutions to the problems facing flood and windstorm insurance, according to a new study from the RAND Corp.

The seven hurricanes that pummeled the Gulf Coast region in 2004 and 2005 did an unprecedented amount of damage, causing nearly $90 billion of insured wind losses to property, with one-half of those losses caused by Hurricane Katrina alone. As a result, insurance premiums skyrocketed, numerous private insurers retreated from coastal regions and government insurance programs were expanded.

The RAND study reviewed the latest research and conducted more than 40 interviews and meetings with a broad range of concerned stakeholders, including coastal residents, consumer groups, insurers, regulators and legislators.

Click here to read Home, Flood Markets Still Troubled (Insurance Journal 10/20/10)

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