APCIA Statement on Proposals for a Federal Reinsurance Backstop

WASHINGTON - The American Property Casualty Insurance Association (APCIA) issued the following statement in response to a proposal for a federal reinsurance backstop discussed during today's forum "Reimagining Homeowners Insurance Amid Growing Climate Risk" hosted by The Hamilton Project and Hutchins Center on Fiscal Monetary Policy at Brookings. The following statement may be attributed to Dave Snyder, APCIA's vice president for policy, research, and international.

"The rising cost of living and the growing challenge of homeownership are weighing heavily on hardworking Americans. We recognize the real financial strain many families are facing, and that reality is driving our focus on practical solutions that responsibly ease cost pressures while strengthening the insurance marketplace.

"The homeowners insurance market is showing signs of improvement as insurers work through the effects of historic inflation and recent catastrophe losses. We are seeing stabilizing pricing, increased availability, and faster claims settlement - progress that reflects disciplined risk management and state-based reforms already underway.

"While proposals for a federal reinsurance backstop are well-intentioned, this proposal raises serious concerns.

"The federal backstop being proposed does not address the real drivers of affordability challenges, including growing risk, inadequate land-use planning and building codes, underfunded infrastructure and emergency response, persistent inflation, and the rising costs of legal system abuse and abusive litigation.

"APCIA believes sustainable solutions must focus on reducing risk, strengthening resilience, preserving market discipline, and reforms to curb legal system abuse - not shifting costs to taxpayers or masking the need for commonsense reforms that make communities safer and insurance more affordable over the long term."