Insured losses from catastrophes in 2011 were almost triple that of 2010. In 2011 these losses totaled $95 billon where it was only $29 million the prior year. Catastrophes include hurricanes, tropical storms, tornadoes, wildfires and earthquakes. Did you know that in 2011 there were 1559 storms which made it the most active tornado season since 1980? All of these natural disasters cause rates for insurance to increase and place a heavy burden on state and federal budgets to pay for restoration. 

2011 was also unusual in that hurricane Irene struck far north of the usual hurricane zones. Insurance companies use computer models to predict their losses and determine premiums. Irene changed the entire model. 

Source: National Underwriter P&C, 1/16/2012