APCIA Opposes Federal Natural Catastrophe Backstop Bill

WASHINGTON, Jan. 13 -- The American Property Casualty Insurance Association issued the following agency statement on Jan. 12, 2024:

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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 yesterday 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.

"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in hazard-prone regions, significant increases in labor and materials costs due to inflation, legal system abuse, and outdated regulatory systems cannot be overcome by a broad federal program that could potentially be more expensive for vulnerable policyholders and put families at even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."

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The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions--protecting families, communities, and businesses in the U.S. and across the globe.

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Original text here: https://www.apci.org/media/news-releases/release/78553/