Catastrophic Losses Fall Significantly.(Brief article)

Washington -- Insurance claims related to catastrophes such as hurricanes dropped sharply in 2007, reflecting a relatively mild hurricane season.

Catastrophe losses totaled $6.5 billion last year, according to the Insurance Information Institute. That compares to $61.2 billion in 2005, when 24 disasters - including Hurricane Katrina - pushed up the total. Katrina alone accounted for $41.1 billion of the 2005 total.

The unexpected lull in hurricanes hitting the U.S. coast is giving insurers an opportunity to bolster its policyholder surplus, the institute said.

But Katrina and lesser 2005 storms such as Wilma and Rita (both of which weakened from Category 5 storms before hitting land) have left the insurance industry and policymakers re-examining how the U.S. deals with massive property damage from natural and man-made disasters.

A Census Bureau report finds that 34.9 million people in the U.S. were seriously threatened by Atlantic hurricanes in 2006, more than three times the number of ...