Jerry Theodorou, who leads the Finance, Insurance and Trade Policy Program at the R Street Institute, commented on a proposed bill to establish a national reinsurer. He noted that while it is positive that the legislation addresses loss prevention, significant questions remain about integrating a national program with existing risk-reduction efforts.
Theodorou also pointed out potential effects on the global reinsurance market, which supplies substantial coverage to U.S. insurance carriers. He warned that introducing a new national reinsurer could disrupt this international market.
“I don’t think it has legs,” Theodorou said. “Some of these defects are kind of alarming — you have the rate cap, you have the possible cutting back of global reinsurance.”
