Insurance Crisis: Why Government-Run Schemes Could Fail Our Needs
Sunday, 15 September 2024, 19:00
The INSURE Act: A Misguided Approach
The INSURE Act, introduced by Rep. Adam Schiff, proposes a federally-run reinsurance entity, but there are significant concerns about its efficacy. Rather than enhancing the reinsurance market, this government scheme
may lead to inefficiencies and financial instability.
Potential Implications of the INSURE Act
- Creates a government entity with inadequate expertise.
- Limits premium growth: The proposed price controls could harm market dynamics.
- Shifts risk management to a publicly funded program, rather than utilizing proven market mechanisms.
Failed Precedents and Lessons Learned
History indicates that government-run insurance programs tend to generate deficits and inefficiencies, as seen with the National Flood Insurance Program.
This proposal risks repeating past mistakes and distracting from genuine, market-based solutions.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.