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On the fifth anniversary of Hurricane Katrina, insurers are highlighting the good that came from the worst U.S. natural disaster in a new report.

The Property Casualty Insurers Association of America released a white paper on Aug. 11, 2010, The Hurricane Katrina Experience – A Property Casualty Insurance Perspective: Five Years Later. David Sampson, president and chief executive officer of the association wrote the document that explores the amount of damage caused by the hurricane throughout Louisiana and Mississippi and how insurers are handling catastrophic events.

More human and financial resources were deployed to assist the region than from any other storm in American history, said Sampson. The insurance industry dispatched thousands of insurance adjusters to the Gulf region to help with filing claims. The industry paid billions of dollars in claims and helped with relief efforts.

Hurricane Katrina Changes Insurance Practices

According to the paper, Hurricane Katrina created important opportunities for the insurance industry to assess the ways it prepares for future natural disasters. The paper lists the following lessons insurers should learn.

• Communities and homeowners must be encouraged to reduce their risk of loss, which would lower costs to insurance companies
• insurers are better able to handle disruptions in service, and many have overcome challenges, such as mobile operations centers
• Insurers are using advanced technologies to improve customer communications and service
• Insurers need to explain the necessity for flood insurance to customers on a regular basis
• They must continue to develop more sophisticated catastrophe models

As part of its plans to use Katrina lessons and apply them to the future, PCI is trying to get legislators to establish effective mitigation programs. They also are using satellite technologies to locate disaster victims and reach them to provide assistance and assess damage in timely manner. Insurers also have campaigned Congress to strengthen the National Flood Insurance Program, the report said.

Katrina Remains Most Devastating Storm

Statistics show Katrina is the most costly disaster in U.S. history, reaching $45.9 billion in damage. Hurricane Andrew in 1992 cost $24.1 billion, the report said. The rest of the top 10 include a California earthquake in 1994, $18.4 billion; Hurricane Ike in 2008, $12.7 billion; Hurricane Wilma in 2005, $11.5 billion; Hurricane Charley in 2004, $8.6 billion; Hurricane Ivan in 2004, $8.2 billion; Hurricane Hugo in 1989; $7.4 billion; Hurricane Rita in 2005, $6.3 billion; and Hurricane Frances in 2004, $5.3 billion.

Hurricane Katrina, the most devastating natural disaster in America has left a long-last impact on hundreds of thousands of people, but it also provided many lessons that property insurers can use in their practices, the report concluded.

A policy which all travelers should seriously consider adopting and include in their budget travel is holiday insurance. If you have this cover, it will protect you against emergencies and unforeseen travel delays such as illness, injury or death, loss or theft of baggage, and flight or trip interruptions, including delay. These events can cost you being out of pocket if you do not have a policy that provides insurance to cope with financial burdens that may arise unexpectedly during your vacation. Having a holiday insurance protects you if something happens. And you can concentrate on enjoying your holiday.

It is quite easy to organize a purchase of holiday insurance – generally you can purchase just before you start on your path, which covers you for the duration of your vacation, or if you think the extension your vacation, find a product that gives you complete coverage continuously.

Most agents and insurance companies offer travel insurance packages for vacations that are tailored to different levels of need. You can easy buy cheap holiday insurance online and the additional advantage is that you can compare many quotes to find the best variant suits your needs.

If you travel a lot, holiday insurance is an important expense. There are a variety of plans for different types of vacationers including backpacker travel insurance, discounted annual coverage, ski or snowboard holiday insurance plans. The backpacker package is particularly useful for those who travel in Europe, taking extended vacations abroad or gap year students. Some holiday insurance for backpackers even cover temporary holiday jobs, such as picking of apples. Skiing and snowboarding holiday insurance plans protect you against potential threats or danger during your holiday and necessary mountain rescue operations by helicopter or air ambulance.

Also you need to know how to begin the procedures for complaints and keep important numbers, such as telephone number of your holiday insurer and your member ID. Make sure you disclose all medical conditions existing prior to the holiday that the failure to do so could invalidate your claim. It is likely that the former disease may break out during your vacation or travel, some policies do not cover this, but others, for a fee, will cover sudden and unexpected recurrence of a pre-existing disease.

American International Group Inc. (AIG) reduced its outstanding principal balance to slightly more than $15 billion, not including accumulated interest and fees. The insurer applied nearly $4 billion received from International Lease Finance Corporation (ILFC) to the Federal Reserve Bank of New York (FRBNY) Revolving Credit Facility (credit facility). Like what you see? Click here to sign up for Insurance Networking News weekly newsletter to get the latest on breaking industry news, carrier technology implementations and developing business and technology trends. The payment of $3.95 billion represents the single largest cash payment AIG has made to the credit facility and is the largest reduction in the credit facility’s principal balance since AIG placed AIA Group Limited (AIA) and American Life Insurance Co. (ALICO) into Special Purpose Vehicles last December and exchanged preferred equity interests in AIA and ALICO for a $25 billion reduction in the balance outstanding on the credit facility. The payment also reduces the size of the FRBNY credit line available to AIG from approximately $34 billion to approximately $30 billion.”This is continuing tangible evidence of AIG’s progress in repaying the American taxpayers,” said AIG President and CEO Robert Benmosche. “AIG is getting stronger every day. We still have more work to do, but we will finish the job and make sure we repay the American taxpayers.”Benmosche notes the progress AIG and its subsidiaries have made during the last year.  “ILFC has demonstrated today further progress in stabilizing its finances and buttressing ILFC’s balance sheet,” he says. “Closing on the ALICO transaction remains on track and we continue to work diligently on the initial public offering for AIA. Our insurance businesses are profitable; client retention rates have stabilized; and surrender rates have improved to normal levels. We are starting to see light at the end of the tunnel.”With the repayment, AIG’s total principal and interest owed on the credit facility is approximately $21 billion. AIG anticipates the repayment will trigger an accelerated amortization of the prepaid commitment fee asset, resulting in an approximately $650 million pre-tax charge being taken by AIG.

If you’re like most American home owners, you probably think that you’re fairly well protected if anything happens to your home. In most cases, as long as you have homeowners insurance, that’s true, more or less. Most homeowners insurance policies protect you from things such as fire, lightning, hail, vandalism and theft. But there are some things which most policies do not protect you from, and some of them are not as obvious as you would think. If you’re not sure about what your insurance policy covers, you might want to check with your agent to see if you’re covered for these things (most likely, you’re not):

1. Water damage: Believe it or not, most homeowners insurance policies don’t protect homeowners from damage due to flooding. This is especially important if you live in areas where there is a significant water source. Since historically, nearly all civilization has been built around water sources, this probably includes the place where you live. You should especially consider adding flood insurance if you live in a Coastal area. After all, who really wants to stand around arguing with an adjuster about how much of the house was damaged by the wind and how much was damaged by the waves when a hurricane strikes?

1. Earthquake damage: We live in Michigan, where you don’t normally think about earthquakes. That changed for us this summer when we felt the tremors of a 5.5 earthquake centered in Ontario, Canada. While most people admittedly don’t deal with earthquakes unless they live in areas prone to them (such as California), you should at least be aware of whether or not your insurance coverage extends to the significant damage an earthquake can cause.

1. Termites and other creepy crawlies: These little buggers will devalue your house in a New York minute. If they do destroy your home, are you covered? Probably not. Of course, calling the Orkin man occasionally will ensure that termites and other bugs are dealt with, so this is one problem you can insure yourself against. But do look into whether or not your policy would pay for any damages caused by these irksome pests.

1. Goods within your home: We tend to think of our homes as our most valuable possessions, but chances are you have just as much value in the items in your home. Break out the calculator and add it up if you don’t believe me. When you factor in all of the stuff you accumulate over the years, it can add up to a short ton. Check to see if any of it would be covered in case of a disaster.

1. Living expenses: If your home was destroyed, where would you go? Wherever it is, you’re going to need to pay for it out of pocket, as likely as not. Most insurance policies don’t include any provisions for your living expenses while your home is unlivable.

State officials are looking to pass a measure that would offer much needed money for Medicaid, mortgage insurance claims have dropped and according to a new list, you may own one of the most stolen cars in the United States.

States Push for $16 Billion for Medicaid

Democrats in Senate are trying to push through a bill that would offer states $27 billion in needed funds, $16 billion of which would be used for Medicaid needs. With health insurance still unavailable to a large number of Americans, the need for Medicaid is still prevalent.

Many states are running out of money to fund the program. As a result, Democrats and President Barack Obama are pushing to pass legislation soon. In order for it to pass, however, it would have to be approved by some Republicans as well (CNN Money).

Mortgage Insurance Claims Have Dropped

Mortgage insurance—which is offered by the Federal Housing Administration (FHA) for homeowners who can’t come up with their 20 percent mortgage down payment and are in danger of defaulting—has performed better than expected this fiscal year.

However, a recent audit of the FHA has found that if housing prices continue to drop and more people take out mortgage loans and then default on them, the administration may be on the hook for more insurance claims. More claims could result in depleted funds, which could result in taxpayers having to foot the bill to cover the losses (Washington Post).

You May Own One of the Most Stolen Cars

If you’re worried about increasing your auto insurance rates then you may want to avoid some cars that the Highway Loss Data Institute has pinpointed as being the most stolen. At the top of the list was the Cadillac Escalade, which had an annual claim frequency of 10.8 out of every one thousand.

Other vehicles that topped the institute’s list include the Chevrolet Silverado, which had an annual claim frequency of 8 out of every one thousand, as well as the Dodge Charger (7.4 out of every thousand), Chevrolet Avalanche (7.4 out of every thousand) and Infiniti G37 Coupe (7.1 out of every thousand) (CNN Money).

When you’re young and you have your own apartment, it can feel like you’ve got the world by the tail. You suddenly find that you have some freedom, some independence like you’ve never had before. Chances are, you realize you have more “friends” than you ever thought you did, too. Especially if you get your apartment while most of them are still living with mom and dad. Still, you’re responsible. You pay your own rent, have your own renters insurance (you do have renters insurance, don’t you? More on that later), and are generally starting to make your own way in life.

At the risk of sounding like a protective parent, be careful out there. There are all kinds of ways for you to get into trouble when you’re young and you have your own apartment. Here are a few things to look out for, some of which should be obvious, and others which you may not have thought of:

• Avoid the credit trap. Now that you have your own mailbox and your own address, you’ll find that companies will come out of the woodwork looking to loan you money. Credit cards are a big temptation. Used the right way, they can be very convenient and helpful, but if you’re not careful to pay off the balance every month, you can end up in a world of hurt when high interest rates kick in and interest starts piling on top of interest. Remember this: no one gives you money for nothing. You’re almost always better paying cash when you can.

• Avoid the friends trap. We’re not saying don’t have friends, or even that you shouldn’t have them over. What we are saying is be careful about “friends” who want you to let them do things that are illegal in your apartment. You’ll no doubt have a friend or two who wants to use your house to have an underage drinking party, or to smoke weed, or any number of things their parents won’t let them do. The thing you have to consider is this: will it still be fun if we get caught? Some things carry legal consequences that are just too stiff to mess with.

• Get renters insurance if you haven’t already. You might think you don’t have much, but trust us on this one. If you start adding up the value of your stuff, it doesn’t take long for it to reach thousands of dollars. Have an agent help you determine how much coverage you need. We know you think fires and other disasters are things that happen to other people, but trust us, it could just as easily happen to you.

Enjoy your apartment and your new found freedom. Just enjoy it responsibly. These first few years of being on your own can be the most enjoyable of your life. Or, they can leave you in a mess. It all depends on what you do with your new found independence.