What Role Should The Federal Government Play in Managing Natural Disaster Risk? Does the Federal Government Really Insure When It Comes to Disasters?

For decades to come, the hurricanes season will surely be remembered. Perhaps it is going to be committed to memory mostly for the reflective authority it is expected to contain in shaping the unrestricted dialogue in this country concerning how large-scale natural misfortunes should be managed in the post-9/11 era. It will also be remembered for its economic and human toll that extracted on those living in the Gulf Coast and Florida.

This year, hurricanes brought much more than just economical damage on cities; they have also taken the souls of many. These hurricanes have devastated all Americans, and with no pity, have slaughtered many dreams. We all try to help in a way - from donating money, or simply praying for those who need help. We try to help as much as we can, but insurance companies haven't paid all the money that the victims of hurricane Katrina were entitled to. In fact, those who had insurance received practically nothing for their ruined homes. The question that many of us would like to know the answer to: What role will the federal government play in managing natural risk?

In the wake of Hurricane Katrina, insurers began to question whether ecological destructions of this magnitude are insurable via the private markets. Numerous government officials were called upon insurance commissioners in California, New York, and Florida to sustain the theory of a nationalized catastrophe fund.

Financing natural catastrophe risk is yet another reason that is often cited for expanding and enhancing the role of the federal government. The National Flood Insurance Program and the Federal Crop Insurance Program are the two programs subsidized by the conditions predetermined in their authorizing statues.

Even though those insurance programs should help those who suffered from hurricanes, they don't. The top ten insured property losses in US from least to most expensive are: Hurricane Jeanne (2004) which made $3.7 billion worth of damage, Hurricane Frances (2004) $4.6, Hurricane Rita (2005) $4.7, Hurricane Hugo (1989) $6.4, Hurricane Ivan (2004) $7.1, Hurricane Wilma (2005) $7.2, Hurricane Charley (2004) $7.5, Northridge Earthquake (1994) $15.9, Sept.11 Attack (2001) $20.1, Hurricane Andrew (1992) $20.8, Hurricane Katrina (2005) $40.0. These ecological destructions particularly need the government's help. After all, without proper insurance, how will the people who suffered these destructions get back on track once again? How will people who suffered so terribly from natural disasters be able to purchase a new home, make new friends, and start new lives? The government won't be able to bring back the family members and friends who fatally suffered, but they can do much to help financially.