Insurance companies are struggling to keep up with economic growth, population shifts, inflation trends and the most unpredictable variable of all: the rising prevelance of natural disasters—big and small.
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Insurance companies are struggling to keep up with economic growth, population shifts, inflation trends and the most unpredictable variable of all: the rising prevalence of natural disasters—big and small Hurricane Andrew was a Category 5 storm when it slammed into Florida in 1992 and cost insurers about $16 billion. Adjusting for consumer price-index inflation, that translates to about $35 billion today, but catastrophe models indicate the actual number would be much higher.
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