A new analysis from a highly regarded U.S. policy think tank is pushing forward the conversation around government intervention in residential property insurance, laying out a detailed framework for federal disaster reinsurance that could fundamentally reshape how the industry manages catastrophic risk.
The report released this week by the RAND Corporation comes as homeowners insurance premiums have surged roughly 20 percent annually since late 2021, with the steepest increases hitting disaster-prone areas.
The research provides policymakers with what amounts to a roadmap for public-private partnerships that could stabilize volatile reinsurance markets.
