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Original Risk: A Society for Change Agents

Economic effects of the Federal Natural Catastrophe Reinsurance proposal

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Here’s an interesting report into the potential downsides of a Federal solution to natural catastrophe reinsurance. Sonecon LLC has issued a paper looking into the ramifications for taxpayers and the private market if the proposed legislation gets the go ahead.

The report concludes that interference in the well functioning private markets could cause massive costs for taxpayers. The report finds that the best way forwards is to continue to allow private insurers and reinsurers to operate without undue state intervention and without legislation to shift the burden to taxpayers.

Read the full report here (Adobe PDF format).

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