According to the Insurance Information Institute, "the number of natural and man-made catastrophes has been increasing on a global scale for 20 years. Eight of the 10 most expensive disasters in U.S. history occurred within the past four years." Disasters such as the tsunami, the September 11, 2001 terrorist attacks, and major hurricanes have "changed the environment in which all of us—insurers especially—operate."

This article, reprinted from Best's Review, addresses catastrophe planning for the insurance industry. Among the conclusions presented in the article is that "the only way to be prepared" is to "collect, store, analyze, leverage, and distribute data." By integrating and using data, "new models and underwriting formulas (will) emerge that reflect "an understanding of exposure across the entire organization" and "key relationships across lines of business."

The article provides insight on the important keys to integrating data, including absorbing near real-time data feeds and supplying detailed data for insurance specific analytical applications. The article also highlights:

• The characteristics that must be present for an integrated data initiative to succeed,
• Three basic steps to lead a successful implementation, and
• Common mistakes of implementations.