{"id":4918,"date":"2026-06-30T04:35:05","date_gmt":"2026-06-30T04:35:05","guid":{"rendered":"https:\/\/www.insuracarelife.com\/blog\/why-state-reinsurance-schemes-keep-failing\/"},"modified":"2026-06-30T04:35:05","modified_gmt":"2026-06-30T04:35:05","slug":"why-state-reinsurance-schemes-keep-failing","status":"publish","type":"post","link":"https:\/\/www.insuracarelife.com\/blog\/why-state-reinsurance-schemes-keep-failing\/","title":{"rendered":"Why state reinsurance schemes keep failing"},"content":{"rendered":"<div>\n<p>Between 2017 and 2026, reinsurers paid out 95% of the premiums they received from US homeowners\u2019 insurers in claims payments and operating expenses. After accounting for the reinsurance industry&#8217;s costs and margin, the net cost of reinsurance to the consumer amounts to less than one cent per dollar of premium. That figure comes from Karalee Morell, executive vice president and general counsel of the Reinsurance Association of America, and it sits alongside a growing wave of state legislative proposals &#8211; in Colorado, Idaho, and elsewhere &#8211; that frame reinsurance costs as the central driver of insurance unaffordability.<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Between 2017 and 2026, reinsurers paid out 95% of the premiums they received from US homeowners\u2019 insurers in claims payments and operating expenses. After accounting for the reinsurance industry&#8217;s costs and margin, the net cost of reinsurance to the consumer amounts to less than one cent per dollar of premium. That figure comes from Karalee [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4919,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3922,611,2285,979],"class_list":["post-4918","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-failing","tag-reinsurance","tag-schemes","tag-state"],"_links":{"self":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts\/4918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/comments?post=4918"}],"version-history":[{"count":0,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts\/4918\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/media\/4919"}],"wp:attachment":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/media?parent=4918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/categories?post=4918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/tags?post=4918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}