Failures in insurance provision across US states hit by natural disasters are due to “excessive government interference”, according to a senior vice president at the American Property Casualty Insurance Association.
Speaking at the FT’s Global Insurance Summit, Robert Gordon said state measures designed to shore up provision had “critically injured” US insurance markets.
“In the US, the markets where you’re having a real availability crisis, [are] because the government is trying to suppress those rates,” he said, referring to the cost of obtaining home insurance.
Large US insurers have restricted underwriting of new home policies in certain states after a rise in the cost of property catastrophe reinsurance, or insurance for insurance companies.
In certain US states, regulators have to sign off on price rises and have been accused of preventing home insurers from keeping up with inflation in claims costs.
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