Due to the strangely large amount of damage done by natural disasters so early in the year, insurance companies are hiking up premiums and looking for other remedies to the problem. Insurers have already lost about $2 billion this year, due to the total number of tornadoes this year being more than twice the 7-year average. Home-owners in states that are generally prone to tornado disasters (Mississippi, Alabama, etc.) are already experiencing a 5% increase in premiums.
What can insurers do to remedy this problem other than increasing premiums?
http://www.reuters.com/article/2012/03/07/us-insurance-tornadoes-idUSTRE8261X320120307
I can't think of anything to do other than increrase the prices especially for locations that are more likely to be hit by tornadoes. If natural disasters continue, insurance companies would become like banks. Many would die out and the bigger companies would only get bigger.
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