Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Should Taxpayers Fund Reinsurance?

April 26, 2017american red cross coastal development fund insurance premiums Reinsurance taxpayers wall street journal

0

Posted

Should Taxpayers Fund Reinsurance?

1 Answer

0

Posted

Should Taxpayers Fund Reinsurance? Thursday June 5, 2008#spacer{clear:left}#abc #sidebar{margin-top:1.5em}zSB(3,3) Reinsurance is insurance for insurance companies. If losses exceed reserves under certain circumstances, insurers can pass that risk on to their reinsurers. Recent legislation in front of Congress and recent comments from presidential candidates support the idea that government – taxpayers – should contribute or support a fund of reinsurance for those insurers insuring major storm damage claims. A recent article in the Wall Street Journal by Elizabeth Williamson points out that the reason these proposals have such support is simple – electoral votes. Florida and other coastal states that would benefit from such legislation have large blocks of electoral votes. The article reveals that several insurers have “teamed up” with t