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Natural Disaster Risk Reinsurance Program Act of 2023

12/15/2023, 3:58 PM

Summary of Bill HR 3525

Bill 118 HR 3525, also known as the Natural Disaster Risk Reinsurance Program Act of 2023, aims to establish a federal reinsurance program to help mitigate the financial impact of natural disasters in the United States. The bill proposes the creation of a fund that would provide reinsurance coverage to state and local governments, as well as private insurers, in the event of a catastrophic natural disaster.

The program would be funded through premiums paid by participating insurers, as well as federal appropriations. The goal of the program is to provide a backstop for insurers in the event of a major disaster, helping to stabilize the insurance market and ensure that coverage remains affordable and accessible for homeowners and businesses in high-risk areas.

The bill also includes provisions for the establishment of a National Catastrophic Risk Consortium, which would bring together experts from government, academia, and the private sector to develop strategies for reducing the impact of natural disasters and improving disaster preparedness and response. Overall, the Natural Disaster Risk Reinsurance Program Act of 2023 seeks to address the growing financial burden of natural disasters in the United States and provide a more sustainable and effective approach to managing risk and protecting communities from the devastating effects of these events.

Congressional Summary of HR 3525

Natural Disaster Risk Reinsurance Program Act of 2023

This bill establishes the Natural Disaster Risk Reinsurance Program within the Department of the Treasury. States may voluntarily participate in the program.

The program provides payments to states for damages from a natural disaster not covered by the National Flood Insurance Program for amounts in excess of trigger amounts. These trigger amounts are calculated by the National Academy of Sciences.

States must present a plan that ensures the coverage of losses by insurers not exceeding the trigger amount. States must also pledge to repay the full amount provided by the program within 10 years.

Current Status of Bill HR 3525

Bill HR 3525 is currently in the status of Bill Introduced since May 18, 2023. Bill HR 3525 was introduced during Congress 118 and was introduced to the House on May 18, 2023.  Bill HR 3525's most recent activity was Referred to the House Committee on Financial Services. as of May 18, 2023

Bipartisan Support of Bill HR 3525

Total Number of Sponsors
1
Democrat Sponsors
1
Republican Sponsors
0
Unaffiliated Sponsors
0
Total Number of Cosponsors
0
Democrat Cosponsors
0
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 3525

Primary Policy Focus

Finance and Financial Sector

Alternate Title(s) of Bill HR 3525

Natural Disaster Risk Reinsurance Program Act of 2023
Natural Disaster Risk Reinsurance Program Act of 2023
To establish a Natural Disaster Risk Reinsurance Program, and for other purposes.

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