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Virtually all meteorological experts agree that hurricane activity will remain high and will continue to present serious risk of loss to the U.S. This prediction means it could be a very expensive summer for insurers. But how can insurers account for the unaccountable?

The simple answer is that all property/casualty companies that write policies in hurricane-prone areas need to be proactive in their preparations. In doing so, these companies must create and enact operational plans for handling higher claim activity, which is something included in an overall enterprise risk management (ERM) methodology.

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