A senior insurance industry official told senators Thursday that federal disaster programs, which President Donald Trump is cutting, are vital to minimizing damage from natural disasters and containing property insurance rates.
Robert Gordon, a senior vice president at American Property Casualty Insurance Association, told a Senate panel that federal agencies, rather than states and local jurisdictions, need to play a major role in mitigation.
“FEMA plays an essential role in disaster mitigation for many losses before they occur,” Gordon said, referring to the Federal Emergency Management Agency. “Those programs are essential for effective mitigation and cannot be easily replicated by the states or private industry.”
The Senate Banking, Housing and Urban Affairs hearing came as Trump is cutting FEMA programs that have given states tens of billions of dollars to build protection against floods, hurricanes and other catastrophes.
