WASHINGTON–A Treasury Department official testified today that legislation creating a joint federal-state program supporting programs providing homeowner catastrophe insurance would have a negative impact on business and taxpayers.
The proposed measure would displace private markets, promote riskier behavior, and be costly as well as “unfair to taxpayers,” said Phillip Swagel, Treasury's assistant secretary for economic policy at a hearing before two subcommittees of the House Financial Services Committee.
Also voicing concern about the legislation was Frank Nutter, president of the Reinsurance Association of America, who said it would “unnecessarily crowd out the private reinsurance market.”
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