We Are Building Better Risk Models

From the excellent Windfall: The Booming Business of Global Warming by McKenzie Funk - -

In 1992, when category 5 Hurricane Andrew struck Florida and Louisiana, insurance companies paid out more than $23 billion in claims.  This was roughly $1.27 for every dollar of premium collected that year.

Fast forward to 2005 and Katrina, another category hurricane.  Insurance companies paid out more than $40 billion.  But this was only 71.5 cents per dollar collected.  The industry still made $49 billion in profits.