Recently, I have read information regarding the discussion of a national catastrophic insurance program which would include terrorism and all peril coverage for any disaster. It has also been discussed to include an overhaul of the current National Flood Insurance Program and give the NAIC more discussion on the matter of catastrophic coverage. I do believe it would be a positive discussion for our commissioners, as each state does have different issues effecting their citizenry, as it pertains to coastal states hurricane risks or midwest and southwest states in tornado prone zones. However, I am not sure a federal program is as effective in administering such a solution as each state could provide on their own. Why not let each state consider its own perils or issues as it relates to a cat program. Each state could have its own re-insurance treaties to protect its own cat program. We all know Washington, D.C. seems to be much farther from the people. We also know any federally administered program usually costs much more than programs administered at the state level and provide less service. Each state program would of course receive its share of federal funds based on its needs and property values or some actuarial formula based on certain measurements. Why shouldn\’t we consider allowing our states to work with their local governments to solve local building code issues? Local officials and state associations probably communicate on a regular basis with state lawmakers and directors. We need not look to the feds everytime an event occurs to solve local problems? As it is I think they will have their hands full enough with homeland security and social security, so lets not make these issues harder than they really are. Let our state insurance commissioners present a package and work with emergency management directors and code officials to solve catastrophic events and prevent future ones as each state sees fit. Anything with the name \”mega-catastrophe program\” is concern for me as it should be for many.Let\’s not rush to a solution before we consider the problem.
Food for thought,
Todd Little
Allied Business Services
Red Oak, Tx.
Recently, I have read information regarding the discussion of a national catastrophic insurance program which would include terrorism and all peril coverage for any disaster. It has also been discussed to include an overhaul of the current National Flood Insurance Program and give the NAIC more discussion on the matter of catastrophic coverage. I do believe it would be a positive discussion for our commissioners, as each state does have different issues effecting their citizenry, as it pertains to coastal states hurricane risks or midwest and southwest states in tornado prone zones. However, I am not sure a federal program is as effective in administering such a solution as each state could provide on their own. Why not let each state consider its own perils or issues as it relates to a cat program. Each state could have its own re-insurance treaties to protect its own cat program. We all know Washington, D.C. seems to be much farther from the people. We also know any federally administered program usually costs much more than programs administered at the state level and provide less service. Each state program would of course receive its share of federal funds based on its needs and property values or some actuarial formula based on certain measurements. Why shouldn\’t we consider allowing our states to work with their local governments to solve local building code issues? Local officials and state associations probably communicate on a regular basis with state lawmakers and directors. We need not look to the feds everytime an event occurs to solve local problems? As it is I think they will have their hands full enough with homeland security and social security, so lets not make these issues harder than they really are. Let our state insurance commissioners present a package and work with emergency management directors and code officials to solve catastrophic events and prevent future ones as each state sees fit. Anything with the name \”mega-catastrophe program\” is concern for me as it should be for many.Let\’s not rush to a solution before we consider the problem.
Food for thought,
Todd Little
Allied Business Services
Red Oak, Tx.