Hurricane!

As hurricane insurance rate increase, some good questions about catastrophe management practices.

I think a more constructive exercise for a consumer advocate, and something that the industry should be undertaking on its own, is a review of cat management philosophy and some reconsideration of how much it costs to bear risk. While I have no doubt that many insurers had forgotten the lessons of Hugo and Andrew, and needed a refresher course in the form of Katrina, Rita, and Wilma… I fear the past six months have seen more reaction than thoughtful action.

If an increase in hurricanes is due to global warming, then it's possible to look at these increases in hurricane insurance as the first real "carbon tax".