U.S. Representative Salud Carbajal (D-CA), along with U.S. Representatives Gabe Evans (R-CO), Troy A. Carter, Sr. (D-LA), 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.

Read the full text of the legislation here.

As economic losses from natural disasters have increased, homeowners’ and business insurance costs have risen. Meanwhile, availability has declined, leading to a growing insurance coverage gap.

“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.”

“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. 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,” said Rep. Evans.

“Louisiana families and businesses are facing a crisis of rising homeowners and flood insurance premiums, worsening our housing affordability issues. 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,” said Rep. Carter.

“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.”

The Senate Joint Economic Committee reported that roughly 70% of Americans stated that their community 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 Act would represent 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:

• Insurance industry
• State insurance regulators
• Emergency management experts
• Academic Institutions and researchers in climate and risk management