Ratings agency Fitch is cautioning that the state of the economy and the financial market make it unclear as to whether the insurance industry would be able to reload capital losses should 2009 be a major loss year. If new capital does not flow into the market should a major loss occur, Fitch says the result would be a much harder market than usually follows a loss. Consequently, Fitch believes that risk selection, diversification and mitigation are even more important in the current environment because insurers suffering large losses may be unable to recapitalize and be forced into run-off as the result. Those insurers surviving the loss would be extremely well positioned to benefit from the resulting hard market, it adds. The commentary comes in FitchÃ¢â‚¬â„¢s annual hurricane season reference guide for insurance investors. For further information on financing catastrophes, check out I.I.I. president Dr. Robert HartwigÃ¢â‚¬â„¢s presentation Financing Catastrophe Losses Amid a Financial Catastrophe.