January 21st, 2015
from the Chicago Fed
By tempering financial losses, the insurance industry lends resilience to the economy and helps homeowners and businesses recover from natural disasters and other catastrophes. In order to do this, however, the insurance industry must itself be resilient.
In 2005, U.S. property and casualty (P&C) insurance companies paid out a record $72.2 billion in natural disaster- and catastrophe-related claims, more than double the claims paid in 2004, yet very few insurers faced insolvency as a result.