Scott emphasized the need for improved mitigation strategies and commonsense regulations to strengthen insurance markets in a Senate Banking Committee hearing. Chairman Tim Scott (R-S.C.) discussed how reforms are necessary to maintain access to affordable insurance coverage.
“I believe that a serious and thoughtful approach to mitigation, combined with insurance market reforms that allow carriers to tie real risks to rates, can help ensure that coverage remains available and affordable for Americans across this remarkable country,” Scott stated.
Scott referred to recent natural disasters to showcase failures in local mitigation policies and the distortions market regulations cause, promoting his legislation to aid flood-prone communities.
During his opening remarks, Scott thanked witnesses for their time and insights. He emphasized the impact of natural disasters in America, especially in the Carolinas and California, and stressed the importance of pre-disaster planning and resilient insurance markets. Scott noted, “For families across the country, insurance markets and insurance is not just a financial product – it’s peace of mind.”
Scott, with experience in the insurance industry, warned about artificial mandates distorting insurance markets and highlighted restrictions on using catastrophe models in California, which led insurers to pay more in claims than they collected in premiums.
He criticized poor land management and lack of basic mitigation strategies for exacerbating natural disasters, stressing the need for reforms. “Mitigation saves lives, it preserves property, and ultimately leads to more stable markets and healthier communities,” Scott affirmed.
The hearing aimed to explore practical solutions for reinforcing community resilience and market stability with insights from industry experts.
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