The program is being created to put pressure on Congress "for better preparation against future catastrophes and protection for consumers and taxpayers from the economic damage they can cause," through legislation providing a tax advantage to companies which create catastrophe reserves to pay for large natural disasters, such as Hurricane Katrina.

The states would also be involved as the primary regulators of insurance companies, Allstate's Mr. Trevino said.

"The work he will be doing for Allstate in helping policymakers understand the need for a partnership between private insurers and state and federal governments doesn't conflict with his work on behalf of the state of Louisiana," Mr. Trevino said. "The audience that we are trying to reach is Washington lawmakers."

Mr. Trevino noted that Mr. Witt's work for Allstate is being disclosed. "We want transparency as well."

The work on the initiative was launched before Hurricane Katrina hit, Mr. Trevino said. But Katrina "heightened people's awareness for providing for security to homeowners and owners of automobiles, our customers. That is what is dictating the timing."

Mr. Witt argued that, "In the wake of Hurricane Katrina--and after an examination of past catastrophes--people and businesses are particularly vulnerable to the economic effects of a natural disaster within today's current recovery system, which relies primarily upon the private insurance market to meet the immeasurable costs."