Wednesday, September 23, 2009

NAIC Praised for Leadership on Natural Catastrophes

ProtectingAmerica.org, the nation’s largest coalition of first responders, catastrophe experts, businesses and individuals concerned about preparing and protecting consumers, communities and the economy in general from the onslaught of massive natural catastrophes today praised the action by the National Association of Insurance Commissioners to adopt a comprehensive "white paper" on the best ways that policymakers can address the effects of major natural events.

"The NAIC’s actions today should be a clear signal to policymakers in state capitals and in Washington that the status quo is a disservice to homeowners and poses enormous threats to taxpayers in general and to the national economy," said Edward T. Collins, national director of ProtectingAmerica.org.

"The leadership of Illinois Insurance Director McRaith, and that of all of the commissioners who worked on this project shows that insurance regulators across America understand that the potential impact of a massive natural catastrophe could be calamitous to the industry, the homeowners it protects and to the national economy," Collins added.

"Clearly, national and state policymakers should respond to this report," he said.

"Our view is that the best first step that policymakers could take would be to enact the Homeowners’ Defense Act of 2009 (H.R. 2555) to set up a national financial backstop that would fortify the financial infrastructure to deal with major catastrophes.  By taking this step now, and pre-funding for the natural catastrophes that we know are coming, capacity would be bolstered, stability would be increased, and preparedness would be improved," he said.

"Establishing such a backstop would help provide more protection at lower cost to consumers, address the potential for insolvencies among insurers and devastating shock to the economy, and prevent the massive taxpayer bailouts that have followed every massive event.," he added.

About ProtectingAmerica.org

ProtectingAmerica.org is the largest coalition of first responders, small and large businesses, insurers and other organizations dedicated to improving the way that American families are prepared for and protected from the devastation that comes from massive natural catastrophes.  The organization’s membership includes more than 20,000 individual members, Allstate and State Farm, the American Red Cross, the International Association of Fire Chiefs and more than 300 other organizations and businesses.

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