The Potential Impact of an Optional Federal Charter on the Social Resiliency of Hazard-Prone Regions

This paper assesses the potential impact that an optional federal charter (OFC) for property and casualty insurance would have on social resiliency in affected communities in the United States. It discusses the benefits and problems associated with the current state regulatory system and then gives a similar analysis of federal regulation. Specific attention is given to the National Insurance Consumer Protection Act, which is the most recent OFC proposal. The paper concludes with a list of recommendations for policy makers to consider when evaluating the insurance regulatory system with focus on enhancing social resiliency.