While the insured storm losses of 2005 may have set records, they were virtually inevitable, said a group of actuaries at a recent industry event.
Most actuarial models included even worse storms in their ultimate scenarios, panelists said at the annual meeting of the Casualty Actuarial Society meeting in Baltimore earlier this week, according to a press release.
Michael Walters, consulting actuary for Tillinghast-Towers Perrin, said that while the insurance industry will ultimately pay out record claims of $50 billion from Hurricane Katrina alone, the solidity of the industry remains strong because of worldwide risk-transfer and risk-spreading measures put in place after the last two mega-catastrophes–Hurricane Andrew and the Sept. 11, 2001 attacks on the World Trade Center and Pentagon.
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