A proposal has been published today calling for the establishment of a United States government backed reinsurance entity named US Re, which would be designed to assume natural catastrophe risks at the most extreme tail of the loss distribution, holding catastrophe risk at the lowest cost possible.
The proposal made by the Hamilton Project at Brookings Institution, calls for a US federal property reinsurer to be formed, to help in supporting both insurance and reinsurance market delivery of more consistent and affordable homeowners insurance coverage in the country.
With climate and natural disaster costs rising the US insurance industry has been challenged, driving higher costs for policyholders, market exits by insurers, as well as cyclical and volatile reinsurance marketplace, the Hamilton Project team explains in the proposal.
FULL ORIGINAL PUBLICATION HERE