This year has broken the record for federal disaster declarations according to the Insurance Information Institute, and the year is not over yet. While 2010 may have set a new record for the number of declared disasters in the nation’s history, 2011 has shattered that record in both number and cost. With three months left in the already infamous 2011, analysts are concerned that more natural disasters could be on the way as a final farewell to the year. With two consecutive years of costly catastrophes, many wonder what is in store for 2012.
According to the Institute, 2010 saw 81 disaster declarations from the federal government, setting a new record. As of September 30, there have been 86 declared disasters this year. Analysts with the Institute expect that number to reach the 90’s by the end of the year.
Natural disasters across the country have put enormous financial strain on the insurance industry, which had already been shaken by last year’s penchant for catastrophe. Federal disaster declarations allowed insurers to make use of emergency resources to aid in the recovery effort, which in turn added to the financial troubles of the federal government. This year’s disasters are likely to have lasting implications for the insurance industry as a whole as insurers take steps to protect themselves from future disasters by raising premiums and introducing new policies.
