RAA praises lauds Leutkemeyer’s amendment on risk transfer

The Reinsurance Association of America (RAA), a long time proponent of transferring risk from the Federal government to the private sector, has commended Rep. Blaine Luetkemeyer for introducing an amendment to a fiscal year 2021 budget document that provides an outline of the House Financial Services Committee’s agenda.

The amendment encourages Federal agencies and departments that hold credit, guarantee or insurance risk that exposes American taxpayers to potential losses, to explore and employ risk transfer to the capital and insurance markets. Rep. Luetkemeyer’s amendment, which was approved by the House Financial Services Committee and supported by Chairwoman Maxine Waters, notes the successful risk transfer programs at the Federal Housing Finance Agency, the National Flood Insurance Program, and the Export-Import Bank, which demonstrates that Federal agencies can manage their risks and mitigate potential losses in their portfolios.

Frank Nutter, president of the Reinsurance Association of America said: “RAA commends Congressman Luetkemeyer and Chairwoman Waters for their continued leadership in supporting transferring risk from Federal programs to the private sector. Risk transfer programs will improve Federal program risk analysis and management while easing the financial burden for risk now borne by the Federal government and ultimately, the American taxpayer.”