PROTECTINGAMERICA.ORG E-NEWS

Building Momentum for Catastrophe Legislation:

National Association of Insurance Commissioners (NAIC)
Winter Meeting

NAIC Calls for National Catastrophe Commission

During the December 9-12, NAIC Winter Meeting in San Antonio, Texas, Florida Insurance Commissioner Kevin McCarty praised the Congressional agenda to prioritize and address catastrophe insurance issues. His enthusiastic comments followed news that the Democratic leadership in the House has prioritized the creation of a federal insurance commission.

'It is a new day,' said McCarty, who has spearheaded creation of a new NAIC catastrophe plan and the creation of a federal backstop fund. Read More (free registration required)

ProtectingAmerica.org Members Warn of New Madrid Earthquake Threat

ProtectingAmerica.org members were invited to participate in the NAIC Winter Meeting by presenting expert input during the New Madrid Working Group on December 9, 2006.

Expert analysis of the area’s unique threat was delivered by three representatives, including Robert Porter, executive director of ProtectingAmerica.org; Dr. Timothy Reinhold, vice president of engineering for the Institute for Business & Home Safety; and James Dalessandro, earthquake historian, author and screenwriter.

Without proper preparation, a repeat occurrence of the 1811 and 1812 earthquakes that shook the then-sparsely populated area for three months could today cause thousands of deaths and billions of dollars in damage.

'The area exposed to the New Madrid fault – home to millions of people and major population centers including St. Louis and Memphis – is just as at risk to a major catastrophe as Florida and the Northeast are to hurricanes and the Pacific Coast is to earthquakes,' said Porter. Read More

Editorials Stress Need for Shared Risk
and National Catastrophe Policy

When natural disaster strikes, 'property damage may be local or regional, but economic impacts extend beyond the most immediately affected areas,' according to an editorial in the Tallahassee Democrat. The editorial advocates that the entire nation should share the burden of risk associated with natural disasters and that Florida officials should continue to seek remedy for the insurance crisis in their state, 'but until a national catastrophe fund is established, solutions most likely will be limited in scope.' Read More

Supporting the call for shared risk, an editorial in the Miami Herald reiterates the need for a national catastrophe policy. According to the editorial, 'the reality is that escalating housing costs, rising land values and increasing population density along coastal areas have combined to push estimates for a natural disaster into the realm of the absurd. Throw in long-range weather predictions of increased hurricane activity for the Atlantic and Gulf coasts, and the nightmare scenario is complete.'

The Miami Herald believes that 'we need a national catastrophe policy that makes the federal government a financial backstop for large natural disasters. It should not replace the insurance industry but rather work with private insurers to guarantee sensible, affordable policies for those who live in the most vulnerable zones. America's coastal regions dodged a bullet this year thanks to a quiet hurricane season, but sooner or later disaster will strike. The only question is whether Congress will act before it's too late.' Read More

Active 2007 Hurricane Season Predicted

Associated Press

The Colorado State University hurricane forecasting team, Dr. William Gray and Philip Klotzbach, predict an above average 2007 Atlantic hurricane season of 14 named storms and seven hurricanes. Read More

The 2006 season produced nine named storms and five hurricanes, none of which hit the United States. Despite a fairly inactive season, Dr. Gray and his team believe the Atlantic basin still remains in an active hurricane cycle and expect the trend to continue for another 10 to 20 years. Read the full report

Real threat of Hurricane in Maryland

(NASA/JPL photo) Hurricane Opal approaches the east coast of the U.S.

Risk Management Solutions, a California company specializing in catastrophe, weather and enterprise risk management, reports the threat of a hurricane hitting the Baltimore region in the next five years to be 25 percent to 30 percent greater than in years past. The assessment concludes that hurricane threat along all Mid-Atlantic and Northeast coastal regions is 30 percent greater today than in years past.

Additionally, the risk of a hurricane making landfall in Florida or along the Gulf Coast region is approximately 40 percent higher than the historical average. Read More

Most Americans still not prepared for disaster

(Source USAToday.com) Residents make their way to the Superdome in New Orleans after Hurricane Katrina in 2005.

Despite warnings and aggressive outreach by emergency management officials, a new study finds that most Americans haven't taken measures to prepare themselves, homes or families for an unexpected catastrophe. Alarming statistics show that only about one-third of the population has made plans with family members about how they would communicate during a crisis.

More than a year since Hurricane Katrina exemplified the need for Americans to prepare their homes and families for catastrophe, emergency management officials report that many individuals remain complacent. Read More

Among the lowest ranking states for preparedness were California, Iowa, Maryland and New Jersey. While no state received a perfect score, Kansas and Oklahoma received top honors. Read more

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