US insurers have settled nearly all of the 1.7 million claims totalling $US40.6 billion ($52.3 billion) from Hurricane Katrina, according to the Insurance Information Institute.

Institute President Robert Hartwig told a hearing of the US House Financial Services Committee’s Subcommittee on Oversight and Investigations that Katrina was the most expensive disaster in the history of insurance.

He says insurers have strengthened their catastrophe response capabilities to respond to customers more quickly following mega-catastrophes like Katrina. Insurers have also invested more in global positioning systems to identify damaged properties. They have also enhanced their claims processing procedures to reduce paperwork and are working to cut red tape.

Dr Hartwig says insurers also support strong building codes, prudent land use management and the development of mitigation technologies. Fewer than 2% of homeowner insurance claims in Louisiana and Mississippi are in mediation or litigation.

For 2005, insured losses for all hurricanes reached $US57.1 billion ($73.5 billion) arising from 3.3 million claims.

Dr Hartwig says it is remarkable that seven of the 10 most expensive hurricanes ever to strike the US occurred in the 14-month period between August 2004 and October 2005.