Policy Issues

Natural Catastrophe Risk

ISSUE

Natural disasters cost the U.S. a record $306 billion last year. With three devastating hurricanes, extreme wildfires, hail, flooding, tornadoes and drought, the U.S. tallied a record high bill last year for weather-related disasters. They also could amount to one of the most expensive years ever for insurers.

Yet, only a portion of the losses will be covered by insurance, as many were uninsured. Many millions have already been dramatically affected and they have incurred costs of one sort or another.

Position

The RE-ISAC team worked to help disseminate threat information, providing actionable data on the path of the storms and on evacuation activities. We also aided coordination of recovery operations and resources.

Background

Meanwhile, we continue to work with Congress to improve and reauthorize the National Flood Insurance Program (NFIP). The program was temporarily extended until Nov. 30, 2019. [Please see Credit and Capital section for more information on NFIP.]