The Reinsurance Association of America said it has launched NatCatUS.org, a Web site to inform policymakers and the public about catastrophe fund proposals.
The RAA says the site provides information about how to best pay for natural catastrophe losses. "NatCatUS.org is dedicated to debunking myths about catastrophes and charting a proactive course based on the realities Americans face before, during and after a natural catastrophe," said a posted material on the site.
The reinsurance organization said that natural disaster is an insurable risk as long as free market can operate. "The private market has done a good job so far and we are opposed to the government getting involved in a cat fund," said Tami Stanton, the Web site's creator.
"Take Hurricane Katrina, for example. For the unparalleled 2005 hurricane losses, U.S. insurers retained 38.9 percent of the loss, Bermuda reinsurers 24 percent, U.S. reinsurers 11.5 percent, European reinsurers 12.6 percent and Lloyds 12.3 percent," said Ms. Stanton, quoting a passage on the site in the section titled "5 myths about catastrophe reinsurance."
The RAA also argues that a federal cat fund displaces the private market. If a free market exists, then government involvement is not necessary, said Ms. Stanton.
Also on the site are discussions about pending federal and state legislation and alternatives to federal and state catastrophe funds.
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