Gregory Heidrich Given Quotations

Given the massive catastrophe losses absorbed by insurers in nine-months 2005, the increase in income and surplus during the first three quarters of the year is a testament to the underlying financial health of the industry. But we can't afford to lose sight of the fact that, as bad as Hurricanes Katrina and Rita were, insurers and the public remain exposed to far more devastating catastrophes that could strain insurers' ability to fulfill their obligations to policyholders. According to PCS, Hurricane Katrina caused a record $38.1 billion in direct insured losses to property. But catastrophe modeling by AIR Worldwide shows we face the prospect of hurricanes causing more than $100 billion in damage. Even as we applaud insurers' success coping with the catastrophes of 2005, we must do more to assure that insurers and the people they serve will survive when even more devastating storms strike.

Given the massive catastrophe losses absorbed by insurers in 2005, the increase in income during the first three quarters is a testament to the underlying financial health of the industry.