Where the parties stand on catastrophe insurance

Sep 3, 2008

Miami Herald--September 03, 2008

Both party platforms call for addressing the rising cost and availability of catastrophe insurance, but they take different approaches.

From the Democratic Party platform:

“We will also work to prevent future catastrophic response failures, whether the emergency comes from hurricanes, earthquakes, floods, tornadoes, wild fires, drought, bridge collapses, or any other natural or man-made disaster. Maintaining our levees and dams is not pork barrel spending — it is an urgent priority. We will fix governmental agencies like the Federal Emergency Management Agency, ensure that they are staffed with professionals, and create integrated communication and response plans. We will reform the Small Business Administration bureaucracy, and develop a real National Response Plan. We will develop a National Catastrophic Insurance Fund to offer an affordable insurance mechanism for high-risk catastrophes that no single private insurer can cover by itself for fear of bankruptcy. This will allow states and territories to deal comprehensively with the economic dislocation of natural disasters.”

From the Republican Party platform:

“Americans hit by disaster must never again feel abandoned by their government. The Katrina disaster taught a painful lesson: The federal government’s system for responding to a natural calamity needs a radical overhaul. We recognize the need for a natural disaster insurance policy. State and local cooperation is crucial, as are private relief efforts, but Washington must take the lead in forging a partnership with America’s best run businesses to ensure that FEMA’s Emergency Operations Centers run as well as any Fortune 500 company. We must make it easier for both businesses and nonprofits to act as force-multipliers in relief situations. We believe it is critical to support those impacted by natural disasters and to complete the rebuilding of devastated areas, including the Gulf Coast.”