P-C Market Problems To Get House Hearing

WASHINGTON–A subcommittee of the House Financial Services Committee said it will hold a hearing Tuesday to discuss the availability and affordability of insurance for natural disasters and ways to address the market's problems.

Four members of Congress, including three from Florida, and Florida Insurance Commissioner Kevin McCarty are scheduled to testify.

Due to speak for the insurance industry are representatives of the American Insurance Association, the Independent Insurance Agents and Brokers of America, and the Reinsurance Association of America.

Also scheduled to testify are representatives of the National Association of Realtors and ProtectingAmerica.org, a group which includes insurers who are advocates for creation of government catastrophe funds.

The hearing before the Subcommittee on Housing and Community Opportunity will examine catastrophe issues, “including what role the federal government should play,” according to the panel's chairman, Rep. Maxine Waters, D-Calif.

“Over the past two years, increasing numbers of homeowners and small businesses have either had their policies canceled [or] have found it increasingly difficult to obtain the coverage they need, or obtain coverage at a price that they can afford,” Ms. Waters said in announcing the hearing.

“We were not adequately prepared to deal with the aftermath of Katrina and Rita, and there is still no consensus on how to respond to another major disaster,” said Rep. Waters. “A critical element to our response must be the flexibility and adequacy of our insurance resources,” she added.