A spate of high-profile natural disasters is prompting fresh conversation among lawmakers about possible changes — and interventions — to insurance in the United States.
Products like homeowners and flood insurance have become increasingly costly in areas prone to disaster as well as one-time “climate havens” like Asheville, N.C. Some states, including California, Florida and Louisiana, have seen national insurance companies leave their markets in droves.
Members of Congress are finding that increasingly hard to ignore as fires destroy thousands of homes in Los Angeles.
Here’s a sample from GOP lawmakers on Monday night:
– “The frequency and severity is such that we need to sit back and think through this in terms of insurance pools,” Sen. Thom Tillis (R-N.C.) said.
– “The extent of it has come to the fore this year because of North Carolina, because of California. I think that’s going to make it an issue,” Sen. Cynthia Lummis (R-Wyo.) said.
– “The insurance industry is very unstable right now, and not just in Louisiana and Florida and California. It’s all across the country,” Sen. John Kennedy (R-La.) added.
Kennedy told reporters he was weighing the development of a “new and different” program aimed at stabilizing the insurance sector.
“Until the insurance market stabilizes, we need to put together a program that covers wind, hail, fire, flood,” Kennedy said.
Republicans aren’t leaping into action en masse. Many blame California’s state insurance regulations and price caps for the LA wildfires.
But an increasing number of GOP voices are gravitating toward reform of some kind, often along geographic lines.
Rep. Young Kim (R-Calif.), whose district has seen serious fires, said insurance coverage had become “a big issue. This may be a good opportunity, as we discuss budget reconciliation, to address this issue once and for all.”
The challenges are steep. Congress hasn’t done a full reauthorization of the National Flood Insurance Program since 2017, let alone a broader disaster program.
Senate Banking Committee Chair Tim Scott (R-S.C.) said in a statement that he was “ready to work with my colleagues to find solutions that aid those affected, and to consider what reforms to the insurance industry may be necessary.”
Three, two, one — tax fight: The House Ways and Means Committee is meeting this morning for the first time this Congress for a hearing on the Trump tax cuts.
Expect Republicans to push for the need to renew their 2017 GOP tax law and talk about what they want to do for small businesses and farmers, a common refrain from Ways and Means Chair Jason Smith (R-Mo.). That could include elements like new tax cuts for manufacturers and boosts for rural businesses.
“If we want to continue President Trump’s legacy of a strong economy, Congress must act swiftly to make the tax cuts permanent,” Smith will say, according to his prepared remarks.
Democrats will push back on the GOP’s tax plans. Ranking member Richard Neal (D-Mass.) said Democrats plan to focus on the distributional impacts of the GOP’s tax plans — arguing wealthier people would stand to benefit most.