Thunderstorms might have been the leading cause of insured losses, but other natural disasters also registered significant claims. Hedde reported that an early start to California wildfires — a season that generally begins in earnest in the second half of the year — has already resulted in $120 million in losses. Tornado counts were at near average, with roughly 890 tornados forming so far. In total, U.S. insured losses for natural disasters topped $11 billion. Somewhat surprisingly, however, is the quiet storm season in the Atlantic, which meant that no losses have been attributed to cyclonic activity through July. That was good news, but Hartwig was cautious in expressing optimism.

“We've heard that catastrophe losses are below where they were last year, but catastrophe losses in the U.S. are back-ended,” said Hartwig. “By that, I mean the second half of the year — and the third quarter in particular — is when the lion's share of losses occur because that's when the hurricane season peaks, as was the case last year with Hurricane Ike and other events.”

Hartwig also noted other economic challenges to insurers, including catastrophic financial conditions that reduced investment gains by 51 percent in 2008. Another drop is expected in 2009. But he stressed that insurers have, by design, been able to handle the difficulties.

“The industry remains well capitalized despite the financial crisis, despite the recession, and despite last year's catastrophe losses,” said Hartwig. “In other words, it's a very resilient industry that is designed to withstand major catastrophes and market crashes simultaneously. Insurance markets continue to operate normally, and the industry's promise to pay remains in tact.”