A multi-billion dollar fund should be established across disaster-prone US states to guard against hurricanes, tornadoes and other natural calamities, according to a peak council of insurance regulators.

The National Association of Insurance Commissioners (NAIC), the body representing the US state regulators, is investigating how Gulf States could pool their resources for reconstruction efforts in the aftermath of a hurricane or tornado.

The NAIC is studying several models for expanding Florida’s $US32 billion ($40.4 billion) fund into a multi-state pool. However, insurers’ reactions to the idea have been mixed.

Losses from hurricanes across the Gulf States in 2004/05 totalled more than $US80 billion ($101 billion).

“A multi-state catastrophe fund will allow states to pool their risks and resources in a tax-advantaged fund to help ensure for consumers the availability, accessibility and affordability of insurance involving a range of natural catastrophes,” NAIC Working Group Chairman Kevin McCarty said.

“We made significant inroads in identifying the many facets of this complex issue and are proceeding in developing the scope and structure of a multi-state fund.”

The NAIC will meet again on March 12 to discuss the idea further.