Author: Jerry Theodorou, opinion contributor

Rep. Adam Schiff’s INSURE Act proposes a novel solution to the reinsurance market by establishing a federal reinsurance entity to increase capacity. While the intention behind the Act is to provide additional support to the industry, the idea of a government-run program attempting to mimic the functions of a professional reinsurer raises concerns. The bill seeks to address gaps in coverage and potentially lower premiums for policyholders by creating a new player in the reinsurance space. However, critics argue that a government-backed entity may lack the expertise and efficiency of established reinsurers, ultimately diminishing the value it can provide to…