Sarasota, Florida, April 11, 2006--James Lee Witt, renowned former director of the Federal Emergency Management Agency (FEMA), now co-chairman of the nonprofit group ProtectingAmerica.org, said Tuesday his group is seeking input from insurers on its program to protect Americans from the effects of natural and man-made disasters.

Witt made his comments in an address to the 2006 Annual Conference of the American Association of Insurance Services (AAIS), a national advisory organization that develops policy forms and rating information used by more than 600 property/casualty carriers throughout the U.S.

Witt won international acclaim for his role in transforming FEMA and coordinating the federal response to more than 350 disasters during his tenure as director from 1993 through 2000. ProtectingAmerica.org is a nationwide coalition of first responders, emergency management experts, building officials, insurance industry leaders and others urging a comprehensive response mechanism to prepare and protect Americans from the effects of catastrophes. 

In his comments, Witt emphasized the importance of sound building and land use policies to avoid and mitigate losses from natural and man-made hazards, an area where there is general agreement between the insurance industry and public sector in most states.

Witt also acknowledged that his audience of insurance executives, most of them from small- to mid-sized companies in the Northeast and Midwest, may disagree with aspects of ProtectingAmerica.org's program.

Among other things, the organization advocates the creation of disaster funds to help victims recover from catastrophes. Some insurers and others wonder whether such approaches would have citizens in less-hazardous areas subsidizing those in more-hazardous areas.

Witt invited audience members to contact him personally via e-mail to share their concerns.

"This is a dialogue we have to have," he told the group. "We want your input. We want your advice."

"If you look at the cost of disasters today, it's just astronomical," he said.

To illustrate the shortfall in insurance coverage today for certain potential disaster losses, Witt asked attendees to consider what the effects would be if San Francisco were struck today by an earthquake of the magnitude of the great quake that struck in 1906.

Economic losses could reach $200 billion in such an event, Witt said, but the California Earthquake Authority has only a fraction of the capital it would need to address them. Only 14% of Californians have earthquake insurance, he noted, in part because the deductibles for the coverage are so high.

In light of the prospect that disasters are predicted to become more frequent and severe, Witt called on the audience to remain open to ideas that might make insurance coverage more marketable to carriers and affordable to consumers.

"We have an opportunity to start a dialogue," he said. "It's probably the most important thing any of you can do over the next year for the nation."