I am confident that the dynamic duo of competitive industry and prudent policy leave America well-placed to face future shocks and that the momentum of the recovery can be sustained, albeit perhaps at a slower pace than has been true most recently. Times change, and when times change so must be the relationship. The example closest to the hearts of many in this room is whether there is now a role for the federal government in the provision of disaster reinsurance. It seems clear that the appropriateness of a federal role in natural disaster reinsurance will be discussed in this Congress as it was in the previous one. We in the Administration have taken an active role in these discussions.
Disasters are a grave concern for all.
Under the leadership of Federal Emergency Management Agency Director Witt, the Administration is presently engaged in a broad range of mitigation initiatives. But it means we must change the way we think and plan and budget. These considerations motivate the Project Impact initiative, which will build disaster resistant communities, saving lives and protecting families and communities against disaster losses. Pre-disaster mitigation is very important, perhaps even more important than what I will talk about here. Insurance cannot undo the human costs of disasters.