The insurance industry is “financially prepared to pay theclaims that may arise out of significant natural disasters in 2013and beyond,” said Dr. Robert Hartwig, president of theInsurance Information Institute, looking ahead at a predictedactive hurricane season.

The industry's claims-paying capital was at a record $608billion at the start of the second quarter of 2013, driven bypremium growth, a reduction in catastrophe losses despite ongoingclaims from Superstorm Sandy, and favorable prior-year reservedevelopment. Direct insured catastrophe losses during the firstquarter were $3.6 billion, among the costliest on record, butfell by $1 billion in the current period.

CSU,TSR Continue to Call for Above-Average HurricaneSeason

“The growth in the industry's capital base occurred despite thefact that insurers paid out nearly $70 billion incatastrophe-caused claims over the prior two years,” says Hartwigin an I.I.I. statement. “The fact that the industry was able tomeet its financial obligations after Sandy, and enter 2013 in sucha strong financial position, is continued evidence of theproperty/casualty insurance industry's remarkable resiliencein the face of extreme adversity.”

Wind damage from tropical storms and hurricanes is covered understandard homeowners, renters and business insurance policies, theI.I.I. says. Flood damage resulting from storm surge caused byhurricanes is excluded under standard property insurance policies.However, it is available from the government's National FloodInsurance Program and some private insurers.

Optional comprehensive auto insurance policies may cover lossesdue to wind damage, flooding and falling objects such as treelimbs.