WASHINGTON (press release) – Congressman Troy A. Carter, Sr. (D-LA) and U.S. Representatives Salud Carbajal (D-CA), Gabe Evans (R-CO), and Mike Ezell (R-MS) introduced the bipartisan Commission on Natural Disaster Risk Management and Insurance Act, a bill to create a nonpartisan commission to study natural disaster insurance affordability and report policy recommendations to Congress within two years.
This legislation follows an “Insurance Affordability Tour” that Congressman Carter convened in February, hosting Senator Sheldon Whitehouse (D-RI), Ranking Member of the Senate Environment and Public Works Committee, in New Orleans with stakeholders from across LA-02. Read the summary of these visits here.
“Louisiana families and businesses are facing a crisis of rising homeowners and flood insurance premiums, worsening our housing affordability issues,” said Rep. Carter. “We’ve seen premiums skyrocket, forcing families to make impossible choices between protecting their homes and paying for groceries, healthcare, or their children’s education. This expert commission will provide Congress with data and recommendations needed to tackle this emergency so that generations of Louisianians can afford to work and live in the place we proudly call home.”
The U.S. property insurance system is under acute strain. Private insurers face multiple challenges that contribute to unaffordable premiums, more restrictive coverage, and declining availability for policyholders. Much of this pressure is due to persistent natural catastrophe risks – floods, wildfires, hurricanes, tornadoes, hailstorms, and earthquakes – that exist in every state. Meanwhile, rising flood insurance premiums under the Risk Rating 2.0 system of the National Flood Insurance Program are prompting policyholders to drop their coverage, weakening the insurance pool.
“As extreme weather drives insurance costs higher and pushes coverage out of reach for too many families and small businesses, the bipartisan Commission on Natural Disaster Risk Management and Insurance Act will give Congress the clear roadmap we need to strengthen access to affordable, reliable insurance,” said Rep. Carbajal. “The increasing frequency of billion-dollar natural disasters demands that we proactively confront the growing insurance coverage gaps, and this bipartisan effort is an important step toward doing exactly that.”
“As communities like those along the Gulf Coast know all too well, natural disasters don’t just threaten lives — they threaten livelihoods,” said Rep. Ezell. “Families and small businesses are facing rising insurance costs and fewer coverage options, creating real financial uncertainty. This bipartisan commission will help us take a closer look at the challenges in our insurance markets and identify practical solutions to ensure Americans can access affordable, reliable coverage when they need it most.”
“Across Colorado, homeowners are facing rising insurance prices as providers are driven out of the state and forced to pull back coverage — leaving behind thousands of families in high-risk natural disasters areas searching for new plans,” said Rep. Evans. “I’m proud to co-lead this bipartisan effort to combat the surge in expensive policies and help protect access to affordable, reliable insurance that Coloradans and Americans deserve.”
“Louisiana has been on the front lines of the growing national insurance crisis for far too long – one that is deeply connected to the increasing frequency and severity of climate-driven disasters,” aid Andreanecia M. Morris, president of HousingLOUISIANA. “This legislation signals that some of our Congresspersons are ready to push the federal government to meet this moment – not just to help communities endure the next disaster, but to ensure they are prepared to recover and thrive in its aftermath. Stable, affordable insurance is essential to preserving safe, decent housing and preventing the loss of families and communities across our state. This bill is a significant step in the right direction.”
“This bill is the direct result of years of work by economists, engineers, scientists, agents, brokers, business owners, and policymakers – led by GNO, Inc.,” said Michael Hecht, president and CEO of Greater New Orleans, Inc. “When everyday Americans can’t afford to insure their homes and businesses, it’s not just a local problem, it’s a national one. A federal commission is the right first step toward a real, durable solution for catastrophic insurance for Americans.”
This legislation is endorsed by Americans for Financial Reform; Bipartisan Policy Center, Coalition for Sustainable Flood Insurance; Greater New Orleans, Inc.; Environmental Defense Fund (EDF); Greater New Orleans Foundation; Greater New Orleans Housing Alliance (GNOHA); HousingLOUISIANA; Gulf Coast Bank & Trust; Home Builders Association of Greater New Orleans (HBAGNO); Flood Mitigation Industry Association (FMIA); National Association of Counties (NACo); New Orleans Area Habitat for Humanity; Northshore Business Council; PETERMAYER; Fair Insurance Rates for Monroe (FIRM); and Smart Home America.
Background:
The Senate Joint Economic Committee reported that roughly 70% of Americans said their communities experienced an extreme weather event in 2023. Between 2019 and 2023, the average annual cost of billion-dollar disasters in the United States was $120.6 billion, more than double the 44-year inflation-adjusted annual average. For many Americans whose home or small business is their largest financial asset, growing insurance gaps and reduced coverage pose a vital risk to their financial health. Underinsurance also poses a risk to local governments whose tax bases rely largely on property values.
The Commission on Natural Disaster Risk Management and Insurance Actis a step toward protecting homeowners, small businesses, and local governments from the growing insurance gaps.
In developing the report, the commission would be directed to:
- Assess the current state of natural disaster insurance markets in the U.S.
- Identify gaps in coverage and affordability challenges, especially for vulnerable populations and high-risk areas.
- Evaluate the role of the federal government to improve insurance access and reduce costs.
The commission’s membership would include representatives from:
- The insurance industry;
- State insurance regulators;
- Emergency management experts, and;
- Academic institutions and researchers in climate and risk management.
Full text of the bill can be found here.
