A concise report issued by the Congressional Research Service on September 15, 2005 provides comparisons of the likely financial impact of Katrina to past disasters, summary data on the financial picture of the insurance industry, and suggests an increased role for the federal governement.
"In the aftermath of Katrina, policy makers, disaster experts, and insurance companies have expressed concerns about the financial costs and challenges of recovering from Hurricane Katrina. Further, they note the potential vulnerability of the insurance industry to a future mega-catastrophic event, and raise questions about what role, if any, the federal government should play in financing catastrophe risks.
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As Members of Congress explore ways to respond to Hurricane Katrina, they may be called upon to consider federal policy alternatives to build national capabilities for disaster risk management. Among measures that might be explored are various legislative proposals to pre-fund the cost of disasters with insurance or capital market instruments (risk securitization)." Congressional Research Service: Hurricane Katrina: Insurance Losses and National
Capacities for Financing Disaster Risk