WASHINGTON — The Property Casualty Insurers Association of America (PCI) issued the following statement today on the House Transportation and Infrastructure Committee, Subcommittee on Economic Development, Public Buildings, and Emergency Management hearing entitled “Controlling the Rising Cost of Federal Responses to Disaster.”
“PCI applauds the House Subcommittee on Economic Development, Public Buildings, and Emergency Management for holding this important hearing,” said Nat Wienecke, PCI’s senior vice president, federal government relations. “Natural catastrophes can happen anywhere in the country. From drought and wildfires, to tornadoes and hurricanes, to flooding and winter storms, the cost of natural disasters is rising. Insurers are committed to responding to consumers’ needs quickly. PCI has many resources to help consumers financially and physically prepare and recover from a disaster.
“PCI believes that the federal government can reduce the potential burdens on taxpayers by transferring risk to the private sector and by adopting enhanced risk mitigation measures. Most private businesses protect their interests through purchasing insurance and transferring risk to the U.S. and global (re) insurance markets. The more insurance is purchased and risk transferred, the less the consequential burden to federal taxpayers when disasters occur.” continued Wienecke. “Additionally, strong building codes, responsible land use policies, disaster planning and response management, and incentives for mitigation are all important to minimizing the cost of natural disasters for both the federal government and private sector.
“PCI appreciates the interest of the Subcommittee in addressing risking federal disaster response costs and looks forward to working constructively with members on potential solutions,” concluded Wienecke.
PCI submitted testimony for the record. The testimony is attached.