Senate Banking Insurance Hearing

September 11, 2023

On September 7, the Senate Banking Committee held a hearing entitled “Perspectives on Challenges in the Property Insurance Market and the Impact on Consumers.”

Why it matters: Given the increasing frequency and severity of extreme weather and natural disasters, property insurance has become significantly more expensive and sometimes unavailable.

Who testified:

  • Douglas Heller, Consumer Federation of America
  • Michelle Norris, National Church Residences
  • Jerry Theodorou, the R Street Institute

Key topics included:

  • Consumer impact — lower income Americans subject to price spikes of up to 80% due to low credit.
  • Cost drivers — inflation, building costs, and rising re-insurance costs all contribute to increases in the price of insurance.
  • Flood insurance — including potential improvements to the National Flood Insurance Program and the role of private flood insurance.

Potential solutions:

  • Jerry Theodorou from the R Street Institute said that California should repeal Proposition 103 because it prevents carriers from utilizing recent catastrophes or reinsurance costs to adjust insurance rates. He also urged continued regulatory support for Florida’s tort reforms and public education on the insurance markets.
  • The Consumer Federation of America’s Douglas Heller said that states should continue to invest in infrastructure resilience and home protection as an alternative to emergency spending. He also argued that the government should establish a federal reinsurance program and encourage states to collect industry data.
  • Michelle Norris from National Church Residences stated that the government should invest in building resiliency and a federal reinsurance program.

CREFC, via its Sustainability Initiative, has launched an Insurance Working Group to identify key issues in the commercial property insurance markets and offer potential solutions. Please contact Sairah Burki at with any questions or to join our Working Group.


Sairah Burki
Managing Director, Regulatory Affairs

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2023 CRE Finance Council. All rights reserved.

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