REALITY: The private insurance industry has insured wind and earthquake risks, including the unprecedented losses of the 2005 hurricane season.

• Reinsurers, utilizing their global resources, play an essential role in the U.S. economy and help protect America by spreading the risk and impact of natural disasters among different market segments.
• For the unparalleled 2005 hurricane losses, U.S. insurers retained 38.9% of the loss, Bermuda reinsurers 24%, US reinsurers 11.5%, European reinsurers 12.6% and Lloyds 12.3%.