Rising Risk, Rising Costs

Katrina, a 140-mile-per-hour hurricane that hit a three-state area (Louisiana, Alabama, and Mississippi) could end up being the most expensive catastrophe in U.S. history. Catastrophe-modeling firm Risk Management Solutions expects Katrina to cost insurers between $40 billion and $60 billion, which would eclipse industry losses from the September 11 terrorist attacks in 2001 and Hurricane Andrew in 1992.