Insurance CEOs put it like this: Unless the country changes the way it handles catastrophes, the next hurricane or earthquake could inflict more economic devastation than last year's Katrina.
According to the Insurance Information Institute, insurance industry leaders at its 10th annual Joint Industry Forum concluded that rigid restrictions are keeping rates artificially low and promoting development in high-risk areas such as Florida, which forces homeowners and taxpayers to subsidize waterfront property owners.
Hanover Insurance Group CEO Frederick H. Eppinger says insurers are pulling back from writing insurance in high-risk locations due to decades of profits drained by Hurricane Katrina claims.
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