Congressmen Mike Ezell (MS-04), Salud Carbajal (CA-24), Gabe Evans (CO-08), and Troy A. Carter Sr. (LA-02) 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.
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 communities like those along the Gulf Coast know all too well, natural disasters don’t just threaten lives — they threaten livelihoods,” said 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:
The commission’s membership would include representatives from:
* Academic Institutions and researchers in climate and risk management
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.