Natural Disaster Risk Reinsurance Program Act of 2023

The Natural Disaster Risk Reinsurance Program Act of 2023 establishes a voluntary federal program administered by the Treasury Department to help insurers avoid insolvency after major natural disasters. It requires participating states to set a pre-set threshold (based on insurance premiums) for covered events like hurricanes or earthquakes; if total insured losses exceed this threshold, the federal government covers the excess through repayable payments. The program directly affects homeowners insurers (covering property/casualty policies for single/multifamily homes) and participating states, which must repay federal funds within 10 years with interest. This aims to maintain market affordability for homeowners insurance by ensuring insurers can cover large-scale disaster claims without collapsing.