Seen at Insurance Journal:
The best way for the federal government to help property owners recover from a natural disaster is to let private insurers do what they know, except in the case of a megadisaster, when federal aid would be needed.[.]
According to Chuck Chamness, president and chief executive officer of the National Association of Mutual Insurers, for the vast majority of natural disasters, government need not be involved. “We believe the private insurance, reinsurance, and capital markets can serve as the predominant source of risk management for natural disasters - unless it’s a mega disaster.”
However a catastrophe comparable to the 1906 San Francisco earthquake could potentially exceed private market capacity, he acknowledged. “To prepare for a disaster of this magnitude, it is appropriate for policymakers to consider whether government programs should be created to supplement the supply of private-sector capacity,” Chamness testified.
Sadly, given the political climate these days, I doubt that the politicians in power are inclined to avoid meddling in more normal operations, or to volunteer what would surely be seen as a “bailout” by some.