The proposed National Association of Insurance Commissioners mega-catastrophe plan centering on an “all-perils” policy will “exacerbate the problems it seeks to correct,” according to a property-casualty trade group.
The National Association of Mutual Insurance Companies, based in Indianapolis, said in comments to the commissioners that if the price for this new policy is determined by government fiat, then “coverage for property owners in high-risk regions would likely be subsidized by property owners in low-risk regions.”
Robert Detlefsen, NAMIC public policy director, said that “unless all homeowners are required to purchase an identical all-perils policy, the plan will lead to adverse selection.”
Continue Reading for Free
Register and gain access to:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
