REALITY: Government proposals that transfer risk from insurers to taxpayers won’t reduce the risk or cost, but will diminish the private market and encourage further development in hazardous areas leading to increased risk and cost in the future.

• There is no assurance that a federal reinsurance program or low interest loans for the states will result in more affordable or available homeowners insurance. The experience of Florida is that cheap reinsurance has not resulted in greater private sector insurance.