NAMIC: Senate Hearing Ignores ‘Toxic Mix’ of Risks Driving Up Costs for Insurers, Policyholders

WASHINGTON (December 18, 2024) – Jimi Grande, senior vice president of federal and political affairs for National Association of Mutual Insurance Companies, commented on today’s Senate Budget Committee hearing, “Next to Fall: The Climate-Driven Insurance Crisis is Here – And Getting Worse,” and a related report released by the committee:

“Days away from a government shutdown, the Senate Budget Committee has failed to produce a federal budget while every second government debt compounds on the backs of taxpayers. Instead of an emergency session on this, the Senate Budget Committee chooses to manufacture an insurance crisis singularly driven by climate change to score political points.

“This hearing shrugs off the toxic mix of extreme weather, inflation and economic uncertainty, and legal system abuse driving up costs for both insurers and policyholders all at once. It does nothing to address climate change challenges or protect Americans from rising costs rooted in poor public policy choices, and sadly devalues this committee’s work. Partisan reports like these, solely to advance a personal agenda, represent why Americans are so frustrated with Washington.

“Everyone agrees that the availability and affordability of insurance face rising risks. Regulatory inefficiencies, poor land use and forest management, population shifts to high-risk areas, and excessive litigation driven by third-party investors have also made insurance coverage more expensive. While these are daunting challenges, mutual insurers have helped policyholders through economic hardships since before the American Revolution and can help them withstand the current risks as well.

“Congress can better serve the American people by helping them strengthen their communities against extreme weather and disincentivizing the abuse of our court system for profit. NAMIC will continue to advocate in support of thoughtful policy proposals to help consumers reduce their risk and lower costs.”