As Congress begins work on a national catastrophe insurance program, debate is taking shape in the insurance industry over the issue. On one side are large insurer trade groups such as the American Insurance Association (AIA) and the Reinsurance Association of America (RAA), whose members oppose a federal role in disaster insurance. On the other side are state insurance commissioners and some of the largest property/casualty insurers such as Allstate and State Farm, which have joined with a coalition of emergency first responders and business organizations that support a federal backstop for catastrophe insurance losses, combined with incentives to mitigate and prevent future damages. A host of bills have been introduced in Congress, including the Homeowners Insurance Protection Act, the Homeowners Insurance Availability Act and the Multiple Peril Insurance Act. The Palm Beach Post published an analysis of the pending proposals:

Catastrophe Insurance Spawns Storm of Debate (Palm Beach Post 4/8/07)

April 11, 2007