WASHINGTON–A Louisiana congressman, who was dispossessed by Hurricane Katrina, told a national meeting of agents and brokers here that there is a need for a federal coastal catastrophe reinsurance program.
Rep. Bobby Jindal, R-La., made his comments at a luncheon for young agents at the Independent Insurance Agents & Brokers of America's National Legislative Conference and Convention.
Mr. Jindal called for a catastrophe program similar to the current Terrorism Risk Insurance Act, which provides funding for insurers when damage from terrorism events exceeds certain thresholds.
As he outlined his idea, the plan would not displace the insurance industry but instead provide reinsurance coverage to those companies writing in coastal regions.
He noted that insurance premiums are increasing at such a rate for property owners along the coast of Louisiana that it is making it unaffordable for some to continue to live there.
The increases, he said, also are keeping businesses in the region from expanding, which is affecting business growth throughout the region. He added that those companies that had reinsurance continue to write coastal risks today, while those that did not are pulling out.
On the issue of health care insurance, Mr. Jindal said a debate is needed that finds answers to the current system, which he described as providing health care for those who don't work but taking it away for those who go to work and can't afford it.
While not outlining his own plan for a solution, he said a government-sponsored health plan would be a non-starter, using what he said was a quote from Ronald Regan on such a plan that it would have "all the compassion of the Kremlin and the efficiency of the Postal Service."
Mr. Jindal also spoke of the crisis he and others faced in the aftermath of Hurricane Katrina.
The congressman, who was displaced from his home along with his family in the face of the flooding in the region, related several stories of inefficiency and bumbling in the aftermath of Katrina.
He praised those outside of the state and federal government who worked outside the system and quickly developed solutions to deal with events as they occurred.
"There were so few instances of common sense in those few days [after Katrina]," said Mr. Jindal of the government's reaction to the crisis.
He told a number of stories where individuals did without official aid or came up with their own unique solutions after they were stifled by the response of government officials who either passed the buck to other government agencies or refused to grant aid because local officials did not have the correct paperwork.
"It brought out the best and worst of people," he said.
"I'm not here to point fingers of blame at the state or federal governments," he said, "but we better do a better job at getting ready for the next catastrophe. We need to apply common sense instead of rules."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.