So what is the progress in my neighborhood on Staten Island, and is it something for which insurers would want to take credit? Well, less than half of the businesses on the main street running through our neighborhood are back. A neighbor across the street from me is still repairing her one-story home. Other houses remain gutted or vacant with a sign out front saying "For Rent." This is not to say this is all insurance-related. But it does say that no one should be under any illusion that everything is back to normal. I know ours is not the only neighborhood in New York or New Jersey still rebuilding.

By coincidence, the Freedom Tower had its spire put in place today, making it tallest structure on the East coast at 1,776 feet (note the nod to symbolism in that figure). According to the Insurance Information Institute's 2013 Insurance Fact Book the terror attack of 9/11 is still the fourth largest insurance loss as of February 2012. Insurers do take pride in the fact that they paid claims despite the War exclusion they could have invoked. Unfortunately, the litigation over whether the attack was one or two events obscured all that good work and I would venture to guess it left some outsiders saying it was just another instance of insurers not wanting to pay for their losses.

Now, insurers are renewing their effort to reauthorize the Terrorism Risk and Insurance Act as the backstop is about to expire. Does that matter? Look at the Boston Marathon bombing and the questions over whether businesses will be covered if they did not take out terrorism coverage. One in 10 might not be covered. Then there are over 200 injured. How many will need long term coverage? Are they covered? If not, where do they get the money?

Bob Bramlett, chairman of the Independent Insurance Agents & Brokers of America says he thinks at some point we will need to develop all perils coverage with a government backstop for major loss. I have to agree. Frequency and loss remain unpredictable and is getting increasingly expensive. The industry has managed to handle a lot so far. But to remain solvent, carriers put limits on risk. Yet, when insurers protect their business it creates that sour taste in the mouth of their insureds.

Our patchwork for disaster management needs improvement. Catastrophes show us that for years afterward, we can still be in the re-building phase. Coverage needs to be simplified and the recovery made more efficient. People shouldn't have to ask, "Where do I get the money for this?" They should only have to ask, "How do I recover?"