Almost three years to the day Hurricane Katrina hit Louisiana as one of the strongest U.S. hurricane on record to make landfall, the same area is bracing itself for the season's seventh-named storm, Gustav. Forecasters say it could reach somewhere on the Gulf Coast by Sept. 1 or 2 as a Category 3 hurricane.

"It does not look pretty," said Judy Wright, public information director for the Louisiana Department of Insurance. "Although the storm's track is uncertain, we are certainly preparing, doing everything we can. We are making sure we have our emergency kits with us in order to carry on department duties."

According to the National Hurricane Center, Gustav is expected to be between Jamaica and Cuba the morning of Aug. 28. The NHC predicts that by Sept. 1 Gustav will achieve Category 3 hurricane status, with winds between 111 and 130 mph, and will be just off the southern tip of Louisiana. Though forecasters warn there is significant uncertainty with a storm this far from the U.S. coast, it does appear as though it will affect the Gulf states. The only question is how severe the storm will be.

State Farm spokesman John Wiscaver said the company is tracking the storm and planning for a response no matter where it strikes.

"One of the unique characteristics of a storm like this is that it gives us a longer time to prepare," Wiscaver said. "We can follow its path and react accordingly to communicate with our customers and internally."

Wiscaver said since Hurricane Katrina, which made landfall Aug. 29, 2005, State Farm has heightened communications internally in order to "know where our employees are -- their well-being -- where they can be to be in the best position." Wiscaver said State Farm looks to keep in contact with customers who may need to evacuate by using radio spots and claims personnel in locations where evacuees relocate.

Robert Hartwig, president of the Insurance Information Institute, said Gustav could be the "first test of preparation" of the fortifications built and the evacuation routes charted in Louisiana since Katrina. He predicts residents "will not wait this time" before evacuating. Louisiana Gov. Bobby Jindal has already held news conferences outlining evacuations with the help of hundreds of buses.

Gustav is predicted to be weaker than Katrina, which struck land as a Category 4. Hartwig said the industry is "absolutely prepared financially and logistically" to handle the storm. He could not predict possible insured losses if a Category 3 hurricane were to hit New Orleans. Katrina resulted in more than $41 billion in insured losses, ranking it the costliest catastrophe in U.S. history.

Much of the damage could be caused by flooding, which is not covered under a standard homeowners policy. "Also, a lot of this area is still not rebuilt," Hartwig added.

Actual and production losses could be seen in the offshore energy sector, he said. On Aug. 27, the price of a barrel of oil had already risen.

According to the National Hurricane Center, Gustav on Aug. 27 had passed Haiti with sustained winds of 90 mph and as of the morning of Aug. 28, the storm is projected to be over the warm water between Jamaica and Cuba. The conditions may be ripe for the storm to gain strength.

"Although the storm is once again over the very warm waters of the Caribbean, the speed with which Gustav reintensifies will depend on its forward speed and direction -- how quickly it can escape the influence of Haiti's rugged terrain," said Peter Daley, director of atmospheric science at risk modeler AIR Worldwide in Boston.

(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)