Tsunamis and Earthquakes: Is Federal Disaster Insurance in Our Future? [April 6, 2005] [open pdf - 81KB]
"Members of the 109th Congress might opt to examine the affordability and availability of natural disaster insurance for homeowners, and consider proposals for improving insurers' access to capital in the reinsurance, banking, and securities markets in order to ensure adequate capacity and solvency of the industry to meet consumer needs. Some of the policy questions that might arise are: What quid pro quo would taxpayers get for providing a financial backstop for the insurance industry? What is the role of state insurance departments vis-a-vis federal control? Is current insurance regulation conducive to creating private sector incentives for mitigation? Who subsidizes whom? These are just some of the policy questions that the 109th Congress might be called upon to debate in considering proposals to establish a federal catastrophe reinsurance program."
CRS Report for Congress, RL32847