[Federal Register Volume 78, Number 79 (Wednesday, April 24, 2013)]
[Notices]
[Pages 24310-24311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-09670]
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DEPARTMENT OF THE TREASURY
Study and Report to Congress on Natural Catastrophes and
Insurance
AGENCY: Federal Insurance Office, Department of the Treasury.
ACTION: Notice; request for comment; call for papers.
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SUMMARY: Section 100247 of the Biggert-Waters Flood Insurance Reform
Act of 2012 (the ``Biggert-Waters Act'' or ``Act'') requires the
Director of the Federal Insurance Office (``FIO''), an office within
the Department of the Treasury (``Treasury''), to conduct a study and
submit a report to Congress on the current state of the market for
natural catastrophe insurance in the United States.\1\
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\1\ Public Law 112-141, Sec. 100247, 126 Stat. 916, 967-68
(2012).
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In conducting the study and issuing the report, the Director shall
consult with the National Academy of Sciences, State insurance
regulators, consumer organizations, representatives of the insurance
and reinsurance industry, policyholders, and other organizations and
experts, as appropriate. Treasury issues this notice to elicit comment
from these persons, groups, and the public, to assist FIO with the
study and the report.
DATES: Comments must be received on or before June 24, 2013.
Papers submitted for consideration in the study must be received by
June 24, 2013.
ADDRESSES: Please submit comments and papers electronically through the
Federal eRulemaking Portal: http://www.regulations.gov, or by mail (if
hard copy, preferably an original and two copies) to the Federal
Insurance Office, Attention: Study on Natural Catastrophes and
Insurance, Room 1319 MT, Department of the Treasury, 1500 Pennsylvania
Avenue NW., Washington, DC 20220. As postal mail may be subject to
processing delay, it is recommended that comments and papers be
submitted electronically. All comments should be captioned with ``Study
on Natural Catastrophes and Insurance.'' Please include your name,
group affiliation, if any, address, email address, and telephone
number(s) in your comment.
In general, comments received will be posted on http://www.regulations.gov without change, including any business or personal
information provided. Comments received, including attachments and
other supporting materials, will be part of the public record and
subject to public disclosure. Do not enclose any information in your
comment or supporting materials that you consider confidential or
inappropriate for public disclosure.
All comments and papers received will be available for public
inspection by appointment only at the Reading Room of the Treasury
Library. To make an appointment, please call the Treasury Library at
202-622-0990.
FOR FURTHER INFORMATION CONTACT: Matthew A. McKenney, Federal Insurance
Office, 202-622-5330 (not a toll free number).
SUPPLEMENTARY INFORMATION:
I. Background
The National Flood Insurance Program (NFIP) was created in 1968. On
July 6, 2012, President Obama signed into law the Biggert-Waters Act,
which modified certain aspects of the NFIP and extended that program
through September 30, 2017.\2\ The Act requires the Director of the FIO
to conduct a study and submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial Services of
the House of Representatives a report (the Report) ``providing an
assessment of the current state of the market for natural catastrophe
insurance in the United States.'' \3\
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\2\ 42 U.S.C. 4026.
\3\ 126 Stat. 916, 967 (2012).
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In addition, the FIO Director must consult with the National
Academy of Sciences, State insurance regulators, consumer
organizations, representatives of the insurance and reinsurance
industry, policyholders, and other organizations and experts, as
appropriate.\4\ This Notice seeks
[[Page 24311]]
comments from these and other interested parties and the public in
support of the Report.
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\4\ 126 Stat. 916, 968 (2012).
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II. General Solicitation for Comments
The FIO hereby solicits comments, including supporting and
illustrative information in support of such comments where appropriate
and available, regarding natural catastrophes and the current state of
the market for insurance for natural catastrophe perils in the United
States.
III. Solicitation for Specific Comments
Please comment on the following considerations: \5\
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\5\ 126 Stat. 916, 967 (2012).
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1. The current condition of, as well as the outlook for, the
availability and affordability of insurance for natural catastrophe
perils in all regions of the United States, including whether a
consensus definition of a ``natural catastrophe'' should be established
and, if so, the terms of that definition;
2. The current ability of States, communities, and individuals to
mitigate their natural catastrophe risks, including the affordability
and feasibility of such mitigation activities;
a. The current and potential future effects of land use policies
and building codes on the costs of natural catastrophes in the United
States;
b. The percentage of residential properties that are insured for
earthquake or flood damage in high-risk geographic areas of the United
States, and the reasons why many such properties lack insurance
coverage;
c. The role of insurers in providing incentives for risk mitigation
efforts;
3. The current state of catastrophic insurance and reinsurance
markets and the current approaches in providing insurance protection to
different sectors of the population of the United States;
4. The current financial condition of State residual markets and
catastrophe funds in high-risk regions, including the likelihood of
insolvency following a natural catastrophe, the concentration of risks
within such funds, the reliance on postevent assessments and State
funding, and the adequacy of rates;
5. The current role of the Federal Government and State and local
governments in providing incentives for feasible risk mitigation
efforts and the cost of providing post-natural catastrophe aid in the
absence of insurance;
6. Current approaches to insuring natural catastrophe risks in the
United States;
a. Current and potential future Federal, State, and regional
partnerships that support private, direct insurance coverage;
b. The potential privatization of flood insurance in the United
States; and,
7. Such other information that may be necessary or appropriate for
the Report.
IV. Call for Papers
The FIO also calls for the submission of papers containing
empirical or non-empirical analyses or evaluations of natural
catastrophes and the current state of the market for insurance for
natural catastrophe perils in the United States. The FIO seeks papers
either recently completed or those that will be completed prior to
close of the Report. We encourage contributions by researchers from
academia, States and State agencies, business organizations, insurance
trade and professional associations, research consulting firms, and
other organizations and experts. Possible topics may include but are
not limited to topics that may be addressed in the Report.
Michael T. McRaith,
Director, Federal Insurance Office.
[FR Doc. 2013-09670 Filed 4-23-13; 8:45 am]
BILLING CODE 4810-25-P