"For example, the insurance industry worldwide is one of the largest investors in fixed income securities - we're talking about government bonds, we're talking about local causes that benefit the community," he added.

"A healthy insurance marketplace is not only about covering your house, it's about insuring there's some stability for funding public good," [Pierre Ozendo] stressed.

Insurers and reinsurers need to improve communication with both insureds and government bodies to avoid government intervention and pressure from regulators, says Pierre Ozendo, chairman and CEO of Swiss Re America Corporation. Ozendo said after he returned from a trip to Louisiana, where he had a chance to speak with legislators and regulators about the rate-setting pressures following Hurricane Katrina, he realized the industry has to become a better communicator with the public and its political representatives.

Communication