The American Property Casualty Insurance Association (APCIA) released the following statement in response to the introduction of the Incorporating National Support for Unprecedented Risks and Emergencies (INSURE) Act. The bill was introduced by Representative Adam Schiff (D-CA). The legislation is co-sponsored by Representatives Zoe Lofgren (D-CA), Rashida Tlaib (D-MI), Julia Browley (D-CA), Kevin Mullin (D-CA), Andrea Salinas (D-OR), and Val Hoyle (D-OR). This statement may be attributed to Nat Wienecke, APCIA’s senior vice president of federal government relations.
The INSURE Act aims to protect homeowners from increasing costs by establishing a federal catastrophic reinsurance program that would cap insurers’ liability and require participating companies to offer policies that cover all natural disasters—including wildfires, flooding and earthquakes.
“We are still analyzing the legislation. We appreciate the interest of Representative Schiff in addressing the insurance availability and affordability challenges in many areas of the country. However, the combination of climate change, accumulation of homes in hazard-prone regions, significant increases in labor and materials costs due to inflation, legal system abuse, and outdated regulatory systems cannot be overcome by a broad federal program that could potentially be more expensive for vulnerable policyholders and put families at even greater risk of losing access to the coverage they need. Federal solutions to a state-regulated industry should be carefully considered, as evidenced by the fact that federal taxpayers are currently at risk from $20.525 billion debt already owed by the National Flood Insurance Program.”